Australia’s consumer credit peak body is urging lenders to ramp up clear, proactive communication with disaster‑affected customers, stressing that hardship assistance is available – and does not damage credit scores.
Arca, previously the Australian Retail Credit Association, has called on banks and other credit providers to support communities facing bushfires, floods, and cyclones with empathetic, easy‑to‑access financial relief.
The reminder comes as Australia endures an especially intense disaster period, with major bushfires in Victoria and south‑east Australia and storms and flash floods across parts of Queensland and coastal Victoria. Insurers say extreme weather caused almost $3.5 billion in losses in 2025, and early 2026 has already brought fresh fires and monsoonal conditions in the north.
With many customers dealing with disrupted income, loss of internet banking access or an inability to get to work, Arca wants lenders to make one message unmistakable: asking for help won’t ruin your credit record.
“Your customers are facing significant stress and uncertainty. Many worry about the impact missed payments may have on their credit, particularly during periods of disruption,” said Michael Blyth (pictured), acting CEO at Arca.
“It’s critical that lenders communicate clearly that financial hardship assistance is there to help people get back on track, and importantly, that accessing hardship support does not negatively affect credit scores.”
Blyth highlighted that hardship assistance can be applied retrospectively for people impacted by natural disasters, ensuring their credit report reflects the true context of missed or late payments.
“If it takes customers some time to get in touch, that’s okay. Lenders can apply hardship support from when the disruption began, ensuring credit reports aren’t negatively affected,” he said.
Arca is urging lenders to reinforce several key messages to customers in disaster zones:
Blyth said consistent, human‑centred communication will be essential as disasters continue to affect communities around the country.
“When customers know there are pathways available and understand their credit won’t be damaged, they’re more likely to reach out when they need assistance,” he said.
Arca is directing consumers to CreditSmart at www.creditsmart.org.au for independent information on financial hardship, credit reporting, and support available during natural disasters, including an Easy English leaflet and a dedicated financial hardship hub.
The association is encouraging lenders, brokers, and other financial services providers to share these resources widely to help customers understand their options and feel confident engaging with their credit providers.
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