Skip to main content
Financial Assistance Hub

ABA welcomes new debt management regulations

5 May 2021

The ABA has welcomed the Federal Treasurer’s release of new regulations that licence debt management firms on 30 April 2021, a change called for by the ABA.

ABA CEO Anna Bligh said, together with changes made last year by the banking sector, these new regulations would will strengthen protections for customers.

“I welcome these changes from Treasurer Josh Frydenberg and believe they’re a necessary protection for customers and an important step for the industry,” said Ms Bligh.

“It’s vital that consumers don’t become victims of predatory credit practices in the debt management industry. These new regulations and stronger compliance measures will help prevent Australians from being ripped off.”

When calling for these changes, the ABA noted that regulators had found debt management firms let customers down by charging high fees, offering regulated services even though they were unlicensed, using high-pressure sales tactics and providing little information about risks.

“It’s vital that consumers don’t become victims of predatory credit practices in the debt management industry. These new regulations and stronger compliance measures will help prevent Australians from being ripped off.”

ABA CEO Anna Bligh

In 2020, the ABA developed an industry approach, in conjunction with consumer representatives, for when Australian banks should deal with debt management firms.

The purpose of the approach is to protect customers by ensuring they are getting the right information from the bank at the right time, including information about free alternative services.

The approach was codified in the Banking Code of Practice as of 1 March 2021.


Debt Management Firms: new principles and compliance measures

Latest news

1 / 3
Media Releases
ABA CEO Simon Birmingham transcript of interview on FiveAA with Will Goodings and Stacey Lee
27 August 2026

E&OERadio InterviewFiveAA Adelaide with Will Goodings and Stacey Lee27 August 2026. Topics: How banks are fighting back against scams; Housing market Will Goodings: All right, let’s talk scams. The CEO of the Australian Banking Association is Simon Birmingham. Birmo, good morning to you. Simon Birmingham Good morning, Will, g’day, Stacy. Will Goodings: How big a… Read more »

Read more
Media Releases
ABA CEO Simon Birmingham transcript of interview on ABC Riverland with Matt Stephens
26 August 2026

E&OERadio InterviewInterview on ABC Radio Riverland26 August 2026 Topics: Small and medium business scams; Tips to avoid scams Matt Stephens: This is a stat for you: four in five small and medium businesses say they’ve had a scam attempt on their business in the past 12 months. Four in five. The Australian Banking Association has… Read more »

Read more
Media Releases
Banks urge small business to stay alert to the risk of scams
24 August 2026

Four in five small and medium businesses say they have been exposed to an attempted scam in the past year, according to new research commissioned by the Australian Banking Association. This Scams Awareness Week, banks are reminding small businesses across the country to take steps to scam proof their operations and protect themselves as well… Read more »

Read more