AFCA’s responsible lending approach consultation
This submission is made on behalf of:
• Consumer Action Law Centre
• Financial Rights Legal Centre
• Consumer Credit Legal Service (CCLS)
• Financial Counselling Australia.
Supporting and representing people through disputes with financial services providers involving responsible lending has been core work for our financial counsellors and lawyers since the introduction of the National Consumer Credit Protection Act 2009 (NCCP Act). We see the devastating impacts of unsuitable credit products upon the finances and lives of individuals and families.
As the external dispute resolution body for consumer related credit matters, the Australian Financial Complaints Authority (AFCA) plays the important role as the only realistically accessible forum for most consumers to seek compensation for harm as a result of the provision of unaffordable credit. We welcome AFCA’s development of an Approach to explain and guide how AFCA will handle disputes about responsible lending.
Overall, we strongly support the framework set out in the Draft Approach. We consider the Draft Approach to largely accurately reflect the law and ASIC guidance that applies to responsible lending, while giving important consideration to reaching fair outcomes.
Read the full submission (PDF).
230915_Sub AFCA RLO approach Final (1)