AFCA has added its voice to a growing chorus of concern about the way lenders are handling customer requests for hardship assistance, saying there is evidence that lenders are failing to respond to requests.
ASIC has warned lenders it will focus on compliance with financial hardship obligations in the year ahead and is ready to take action through the courts.
The majority of lenders in the Australian consumer credit market are not giving their customers appropriate hardship support, according to Financial Counselling Australia’s latest Rank the Banks report.
There has been an “alarming” rise in breaches of Part 9 of the Banking Code of Practice, which covers obligations to support customers facing financial difficulty.