From 1 July 2022, credit reporting changes will come into effect protecting the credit history of consumers who are in financial hardship.
Consumers who agree to a financial hardship agreement with their lender for a personal loan, home loan, car loan or credit card will have their repayment history safeguarded through a special payment arrangement.
This arrangement will be implemented for a period of time set by the lender.
It is important to note that the credit report will not include the reason for the consumer entering the hardship agreement nor the specific details of the agreement.
Australian Retail Credit Association (ARCA) chief executive officer Mike Laing said financial hardship shouldn’t be perceived as a reflection of poor credit management.