Clarification on retail lender obligations and COVID-19
- Industry has written to ASIC seeking guidance on a number of matters around regulation of lending during COVID-19.
- ASIC has responded to provide clarity on issues of hardship, responsible lending and communication.
ASIC encourages lenders to continue to work closely with their customers to develop options that provide both short-term assistance to customers experiencing difficulty due to COVID-19 and also longer-term viability post COVID-19.
Responsible lending obligations apply to new lending (i.e. new loans or an increase to a credit limit on an existing loan). These obligations do not apply, and should not be considered by lenders as a barrier to, making appropriate changes to the terms of existing loans in response to hardship situations.
For more information read the Australian Banking Association's letter to ASIC and our response:
ASIC is Australia’s corporate, markets and financial services regulator.