ME Bank sends appalling email to mortgage holders after deciding to pass on Reserve Bank's interest rate hike
ME Bank has come under fire after sending customers an extraordinary email declaring it was ‘pleased to announce’ it was increasing home loan rates.Customers were shocked on Tuesday when the lender sent a cheery email saying it was 'pleased' to inform customers variable home loan rates would increase, following the RBA's decision to raise the cash rate by 25 basis points to 3.85 per cent.‘Following the recent announcement from the Reserve Bank of Australia (RBA) to increase the official cash rate by 0.25 per cent per annum, we are pleased to announce that we are passing on this rate increase in full on your variable home loan,' the email read. The hike, RBA’s first since 2023, had been widely anticipated amid persistent inflation and surging private demand.Even so, for mortgage holders already feeling the pinch, ME Bank’s upbeat announcement was galling.One angry customer shared the message on Reddit, triggering an immediate backlash online. 'At least they’re honest I suppose?’ one user wrote, as dozens accused the bank of being tone-deaf. The email sent to customers of ME Bank saying they were 'pleased' to increase their rates The poster said the email convinced them to leave the bank.Within five hours, ME Bank rushed out a second email, attempting to contain the fallout.‘Today, you received an update about your interest rates which contained incorrect content,' the email said. 'We’re really sorry about any confusion this has caused.'The bank admitted the initial message ‘did not reflect ME’s commitment to communicate with clarity and empathy’.ME Bank acknowledged the pressure rising rates place on households, especially as its own increases take effect earlier than those from most major lenders.While Commonwealth Bank, ANZ and NAB won’t lift their rates until February 13, ME customers will face higher repayments from February 7, making them among the first to feel the squeeze.Join the debateHow should banks communicate tough news like rate hikes to customers already under financial stress? ME Bank issued an apology five hours after the first email was sent to mortgage customers The RBA’s move will add around $90 a month to repayments on a typical $600,000 mortgage, with economists warning borrowers to brace for more pain if inflation remains stubborn. The controversy comes as a political row erupts in Canberra, with the Opposition blaming government spending for fuelling inflation.Treasurer Jim Chalmers has rejected that claim, insisting the current pressure is the result of ‘higher than expected’ private-sector demand.Daily Mail contacted ME Bank for comment.
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ME Bank sends appalling email to mortgage holders after deciding to pass on Reserve Bank's interest rate hike
