Wednesday, 28 March 2018

Review of financial hardship arrangements

Media release

The Turnbull Government will review the operation of financial hardship arrangements.

The review, led by my Department, will include consultation to consider the current hardship arrangements and how they intersect with the consumer credit reporting framework.

Hardship arrangements are currently regulated under the National Credit Code in the National Consumer Credit Protection Act 2009.

A person who has entered a hardship arrangement currently does not have that arrangement reflected on their consumer credit report under the Privacy Act 1998.

The review will respond to concerns raised by industry and consumer-advocacy groups around how hardship arrangements are treated and will make recommendations on whether reforms are required.

The review is expected to be completed by late 2018.

This review continues the Turnbull Government’s ongoing engagement with consumer credit reporting.

The Treasurer today introduced the National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit Reporting) Bill 2018 into Parliament which will expand the credit reporting scheme by requiring participation by the major banks. More information can be found on The Treasurer's website

Further information about the review will be released on my Department’s website and submissions will be invited from the community.