The Australian Financial Complaints Authority (AFCA) has published an updated Financial Difficulty External Dispute Resolution (EDR) Response Guide, setting clearer expectations for how financial firms should respond to complaints involving financial hardship. The enhanced guide expands on the original by setting more detailed requirements for documenting and explaining decisions, responding to hardship notices, and demonstrating compliance with regulatory obligations. It draws on the National Credit Code, relevant industry Codes of Practice, and AFCA’s fairness principles, and adds guidance on addressing customer vulnerability alongside a more comprehensive list of supporting information to support thorough and transparent responses aligned with AFCA’s requirements.
Australian Financial Complaints Authority 2025-08-14
Australian Financial Complaints Authority updates its Financial Difficulty EDR Response Guide to clarify expectations for hardship complaint responses
The Australian Financial Complaints Authority has updated its Financial Difficulty External Dispute Resolution Response Guide, clarifying expectations for financial firms in handling hardship complaints by detailing documentation, decision explanations, and compliance with regulatory obligations. The guide incorporates the National Credit Code, industry Codes of Practice, and AFCA’s fairness principles, with added guidance on customer vulnerability and a comprehensive list of supporting information.