The Australian Financial Complaints Authority has strongly welcomed the Australian Securities and Investments Commission’s (ASIC) updated guidance on responsible lending obligations.
AFCA Chief Executive Officer and Chief Ombudsman David Locke said AFCA believes the guidance will provide greater clarity to financial firms in meeting their obligations and will result in fairer outcomes for consumers.
“AFCA strongly welcomes the updates to ASIC’s guidance on responsible lending obligations for financial firms,” Mr Locke said.
“AFCA’s approach to complaints about responsible lending will fully align with ASIC’s guidance.”
AFCA also welcomed ASIC’s clarification that its responsible lending guidance does not apply to providers of credit to small businesses.
“The guidance makes it explicitly clear that the National Consumer Credit Protection Act does not apply to small business lending,” Mr Locke said.