Quick links

• What is this consultation about?
• What is an AFCA approach document?
• Why has AFCA created these new approaches?
• What are Responsible Lending complaints?
• What are Small Business Lending complaints?
• What is the consultation period?
• What is the consultation process?
• Where can I provide my feedback/submission?
• What if I have accessibility needs?
• Are submissions anonymous?
• More information and further questions

What is this consultation about?

AFCA is consulting on two new approaches for key complaint areas in Banking and Finance and Small Business: AFCA’s Responsible Lending Approach, and AFCA’s Appropriate Lending to Small Business Approach.

AFCA invites all stakeholders to provide feedback or make a submission during the consultation periods. The consultation is open:

• Responsible Lending – Monday 31 July 2023 to Monday 11 September 2023, and
• Appropriate Lending to Small Business – Friday 18 August 2023 to Friday 29 September 2023.

What is an AFCA approach document?

AFCA’s approach documents help complainants and financial firms better understand how AFCA might approach some common issues and complaint types, and how we reach decisions. We publish our approach documents on our website.

Why has AFCA created these new approaches?

AFCA has listened to stakeholder feedback and as a result, we are documenting how we manage complaints in these two key areas. The two new approaches have been developed to:

• provide greater clarity around what to expect from AFCA processes
• provide transparency about the way we investigate complaints and make decisions
• ensure we continue delivering consistent outcomes for complaints
• assist in efficiently and effectively avoiding and resolving disputes
• outline how AFCA applies legal principles, industry codes and regulatory guidance, and
• support both complainants and industry to better understand how we consider these complaints.

What are Responsible Lending complaints?

Responsible Lending complaints are about situations where a consumer took out a loan or credit for personal, domestic or household purposes. This includes personal loans, credit cards and home loans. For more information, read the Responsible Lending Approach document.

What are Small Business Lending complaints?

Small Business Lending complaints are complaints made to AFCA by an eligible small business about credit provided to them for business or investment purposes (other than investment in a residential property by an individual). This includes business loans, overdrafts, lines of credit, leases and other loans. For more information, read the Appropriate Lending to Small Business Approach document.

What is the consultation period?

The consultation is open:

• AFCA’s Responsible Lending Approach document – Monday 31 July 2023 to Monday 11 September 2023, and
• AFCA’s Appropriate Lending to Small Business Approach document – Friday 18 August to Friday 29 September.

What is the consultation process?

AFCA's Responsible Lending Approach document
Date	Milestone
Monday 31 July 2023	Consultation on AFCA’s Responsible Lending Approach document opens
Monday 11 September 2023	Consultation on AFCA’s Responsible Lending Approach document closes
September – November 2023	AFCA to consider and respond to consultation submissions and feedback
November 2023	AFCA to publish submissions received
Late 2023 – early 2024	AFCA publish updated final Approach (subject to external approval)

 

AFCA’s Appropriate Lending to Small Business Approach document
Date	Milestone
Friday 18 August 2023	Consultation on AFCA’s Appropriate Lending to Small Business Approach document opens
Friday 29 September 2023	Consultation on AFCA’s Appropriate Lending to Small Business Approach document closes
September – November 2023	AFCA to consider and respond to consultation submissions and feedback
November 2023	AFCA to publish submissions received
Late 2023 – early 2024	AFCA publish updated final approaches (subject to external approval)

Where can I provide my feedback/submission?

AFCA invites all stakeholders to provide feedback or make a submission through one of the following channels:

What if I have accessibility needs?

AFCA is committed to providing a service that is accessible to everyone, including giving you the information you need, in a format that works for you. In line with the Disability Discrimination Act 1992 (Cth), AFCA is also committed to ensuring that our information and services are provided in a non-discriminatory way. If you have accessibility needs, please email us at consultation@afca.org.au, or call us on 1800 931 678 to tell us about any additional assistance you might need. We welcome the opportunity to discuss the types of assistance we can provide or facilitate, to help you interact with us.

Please note all feedback and submissions should be sent to AFCA by:

• Monday 11 September for Responsible Lending
• Friday 29 September for Appropriate Lending to Small Business.

AFCA will consider and respond to consultation submissions and feedback after the consultation periods have closed.

Are submissions anonymous?

Your submission will be published on AFCA's website. Please note, we will not treat your submission as confidential unless you specify that a part or all of it is confidential.

You may choose to remain anonymous when making a written submission. However, if you decide to remain anonymous, we will not be able to contact you to discuss your submission should we need to.

Please refer to our privacy policy for more on how we handle personal information.

More information and further questions

If you have further questions about the new approaches or consultation, or need more information, please email consultation@afca.org.au.