Find out more about financial difficulty and credit reporting
25 July 2022
The ABA and member banks have today launched new credit report fact sheets that outline in clear language the support that is available for customers who run into financial difficulty.
A consumer-focused fact sheet includes information on help that banks can provide, how financial hardship information can disappear from credit reports after a set period and contains handy links to further assistance.
This includes the ABA’s Financial Assistance Hub and the CreditSmart website, a useful resource to learn more about credit reports.
There is also a separate factsheet and further FAQs designed to help financial counsellors understand how financial hardship arrangements are now reflected on credit reports from 1 July 2022 onwards.
“As the new financial year gathers pace, Australian banks are continually improving ways in which they communicate to customers the options that they have when customers run into financial difficulty and how this may or may not affect their credit score,” ABA CEO Anna Bligh said today.
“these factsheets are just one tool in Australian banks’ toolkit of offerings to help customers to get back on track”ABA CEO Anna Bligh
“If a customer experiences financial difficulty and believes they will not be able to make their loan or credit card repayments on time, it is important that they get in touch with their bank as soon as possible.
“Banks have very experienced people available to provide bespoke and tailored packages to customers as the best course of action will depend on individual situations and needs.
“Depending on their circumstances, a customer and their bank may agree to a financial hardship arrangement. For example, it may be that a customer either stops making repayments for a few months to get a bit of breathing space or instead continues to make smaller repayments to reduce the total balance they owe.
“We all may experience financial hardship at some time and these factsheets are just one tool in Australian banks’ toolkit of offerings to help customers to get back on track when they need it, with respect to their finances.”
Short Guide: Customers and Short Guide: Counsellors as well as the Credit Reporting FAQs are now available for download.
“Australian banks are certainly better equipped now than they were in the GFC. They’ve got 2 to 2.5 times the capital reserves put aside for a rainy day than they had in the GFC”
“The Australian Banking Association (ABA) welcomes the agreement reached today on the proposed safeguard mechanism reforms, given it paves the way for the passing of a critical piece of legislation for Australia.
“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”