AFCA has published an updated Financial Difficulty External Dispute Resolution (EDR) Response Guide.
The revised Guide clarifies expectations for financial firms handling financial hardship complaints, with a focus on clearer documentation, timely and appropriate responses to hardship notices, and stronger demonstration of compliance with the National Credit Code, industry codes, and AFCA’s fairness principles.
The Guide details the types of assistance that can be requested, such as loan term extensions, payment deferrals, or temporary payment reductions.
It also explains AFCA’s process for handling complaints, including negotiation, conciliation, and assessment of whether financial firms have responded appropriately and in line with the National Credit Code and industry standards.
The updated guidance addresses customer vulnerability and outlines required supporting information to ensure responses are thorough and transparent.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
