Hardship variation request to Westpac
Re: Hardship variation request — Account ending 4421 — Reference FG-2025-ABC123
Dear Westpac Customer Resolution Team,
I am writing on behalf of Ms Jane Smith to formally request a hardship variation under section 72 of the National Credit Code (Schedule 1, National Consumer Credit Protection Act 2009 (Cth)). Ms Smith has held her mortgage account ending 4421 with Westpac since 2019 and has met all repayments in full and on time prior to the events described below.
On 14 March 2025 Ms Smith was made redundant from her position of seven years. Concurrently she has been managing a chronic medical condition that has limited her ability to take up replacement work in the immediate term. As a direct consequence the account has fallen into arrears of $4,820 and Ms Smith is unable to meet the scheduled monthly repayment of $2,310 in the absence of a hardship arrangement.
The Australian Financial Complaints Authority has consistently held that, where job loss combined with a verifiable medical limitation is the trigger event, a payment pause of three to six months — with interest capitalised and no default fees applied — is an appropriate variation. See AFCA AF-2024-1234, AFCA AF-2023-5621, and the underlying obligation at NCC s72.
Pursuant to that line of authority, Ms Smith requests the following hardship variation: a three-month pause on scheduled repayments commencing on the date of Westpac's written acknowledgment of this request; capitalisation of interest accrued during the pause; and an undertaking that no default fees, default listings, or enforcement steps be taken on the account for the duration of the pause and for thirty days thereafter.
I would be grateful for a written response within 21 days of the date of this letter, in line with ASIC RG 271 and Westpac's obligations under the Banking Code of Practice clause 31. I act under a written Authority to Act, a copy of which is attached. Please direct all correspondence to my office, with Ms Smith copied at the address shown.
Yours faithfully,
Sarah Kim · Adviser, FairGo