COVID-19 information for lenders
The Australian Prudential Regulator Authority (APRA) announced an extension of its temporary capital treatment for bank loans on 8 July 2020. This means that lenders have the option of extending repayment deferrals for an additional 4 months for borrowers that require further assistance. An extension to a repayment deferral will not be automatic and lenders will be contacting borrowers to determine what are the best options for them given their circumstances.
ASIC is closely monitoring how lenders are assisting consumers who are experiencing financial difficulties due to COVID-19.
Lenders must also do all things necessary to ensure that the credit activities authorised by their licence are engaged in efficiently, honestly and fairly.
In April 2020, ASIC wrote to lenders about responsible lending, hardship and other matters.
In August 2020, ASIC issued its expectations of retail lenders when loan repayment deferrals end.