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This submission is provided on behalf of Consumer Action Law Centre, Financial Rights Legal Centre, Mob Strong Debt Help and Mortgage Stress Victoria. 

We strongly support the Banking Code Compliance Committee (BCCC) continuing to focus on how banks are meeting their Code obligations around management of financial difficulty requests.  We call for better and more consistent practices across banks. 

We continue to see cases of banks, including major banks, being insufficiently flexible with customers who are struggling to meet loan repayments.  This is concerning, particularly in light of the significant cost-of-living challenges faced by many in the community, and the heightened regulatory focus from ASIC following its May 2024 financial hardship report (REP782)1 which found that banks should be doing much more to support Australians. 

We hear from consumers who have dropped out of their bank’s hardship process as a result of barriers in accessing the support they need.

Read our recommendations in the full submission (PDF).