Australian Securities & Investments Commission publishes Report 815 finding improved hardship support but ongoing weaknesses in lenders’ responses

The Australian Securities & Investments Commission (ASIC) released Report 815 Hardship, not so hard to get help, noting that lenders have made material improvements to financial hardship assistance since ASIC’s 2024 review but warning that hardship responses still often fall short and require continued focus on customer outcomes. Reported improvements include increased customer awareness of hardship assistance, corrections to policies and training materials, better identification of hardship notices, more flexible information collection, and the removal of default requests for large volumes of customer information. After ASIC’s 2024 findings, lenders that received tailored feedback were required to provide action plans and, in some cases, obtain external independent assurance that changes were implemented and effective; however, ASIC remains concerned about “cookie-cutter” approaches that are not tailored to individual circumstances. The release also highlights ongoing enforcement activity, including a Federal Court penalty of AUD 15.5 million against NAB in August 2025 for late responses to hardship notices and ASIC and ANZ’s request for a AUD 40 million penalty in September 2025 relating to response times and hardship processes. ASIC will continue monitoring lenders’ progress against their action plans, including reviewing independent assurance reports, and stated it will take further action where lenders fail to comply with their obligations.