Consultation closed
Consultation on AFCA’s draft Approaches to Responsible Lending and Lending to Small Business (formerly Appropriate Lending to Small Business) have now closed. The consultation periods were:
- AFCA’s Responsible Lending Approach – 31 July to 11 September 2023
- AFCA’s Lending to Small Business Approach – 18 August to 29 September 2023
AFCA would like to thank stakeholders for a constructive and cooperative consultation process. Formal submissions are published on the consultation pages below. AFCA has now published the final Responsible Lending and Lending to Small Business Approach documents and separate consultation feedback reports outlining how we responded to formal submissions and stakeholder feedback.
About the consultation
The draft approaches have been developed to provide greater clarity around what to expect from AFCA processes, greater transparency about the way we investigate complaints and make decisions, and ensure we continue to deliver consistent outcomes for complaints to AFCA.
The documents will help complainants, financial firms and stakeholders understand how AFCA considers complaints in the two key areas of Responsible Lending and Lending to Small Business.
They outline how AFCA applies legal principles, industry codes, regulatory guidance and considers good industry practice when investigating these complaints. The documents are informed by feedback received during our complaint handling process with our stakeholders, including government, regulators, financial firms and consumer advocates.
Together, the Responsible Lending and Lending to Small Business Approaches will support complainants and financial firms to better understand how we consider these complaints, and assist in efficiently and effectively resolving and avoiding disputes.
AFCA’s final Responsible Lending Approach and consultation feedback report
AFCA's final Responsible Lending Approach document has now been published, along with a consultation feedback report outlining how we responded to formal submissions and stakeholder feedback. The Responsible Lending Approach explains how we consider these complaints, including:
- how we assess a financial firm’s compliance with responsible lending obligations
- how we determine a fair outcome where a firm breaches its responsible lending obligations, and
- how we calculate loss and assess benefits to determine compensation.
AFCA’s final Lending to Small Business Approach and consultation feedback report
The Lending to Small Business Approach document (formerly Appropriate Lending to Small Business) has now been published, alongside a consultation feedback report outlining how we responded to formal submissions and stakeholder feedback. The Lending to Small Business Approach explains how we consider these complaints, including:
- the types of small business complaints we can consider under AFCA’s Rules
- how we assess if a financial firm’s credit assessment was appropriate
- how we consider industry codes, regulatory guidance and good industry practice in our decision making
- how we determine a fair outcome where a firm has provided an inappropriate loan, and
- how we calculate loss and determine how much compensation should be paid.
AFCA New Approaches Consultation - Webinar, Monday 4 September 2023
AFCA held a public webinar about its approaches on Monday 4 September.
The webinar provided an overview of the two approaches, a summary of the key themes and focus areas and gave stakeholders the opportunity to ask questions.
If you could not attend or would like to watch the webinar again, you can watch a recording of the session here.
Frequently Asked Questions
Answers to frequently asked questions about AFCA's Responsible Lending and Lending for Small Business approaches.
Contact us
If you have any questions about the proposed changes, or the consultation process, please email consultation@afca.org.au
