The Australian credit industry is undergoing a significant shift in how it recognises and responds to family, domestic and financial abuse. Historically, credit reporting frameworks focused primarily on the technical accuracy of credit information. Today, there is growing recognition that a person’s credit file may also reflect the consequences of coercion, control, and abuse, rather than their true financial behaviour.
In response, the Australian Retail Credit Association (ARCA) has introduced its Principles of Best Practice: Domestic Abuse and Credit, providing industry-wide guidance for lenders, brokers, credit reporting bodies, and other participants in the credit ecosystem. The principles aim to ensure that victim-survivors of family and domestic abuse are not unfairly disadvantaged by credit information that arose from coercion, fraud, or financial abuse.
As Australia’s peak industry association for credit reporting and data sharing, ARCA plays a central role in developing industry standards and the Credit Reporting Code. ARCA has continually updated guidance and industry practices to ensure that the credit framework evolves alongside emerging risks and consumer needs.
This shift asks the industry to look beyond technical compliance and consider the human impact of credit information. By embedding awareness, empathy and practical support into customer interactions, brokers and lending professionals can help create a safer, fairer and more trusted credit system.
Understanding the Connection Between Family & Domestic Abuse and Credit
Family and domestic abuse is often associated with physical or emotional harm, but financial abuse is one of its most common and enduring forms. Perpetrators may:
- Open accounts without consent
- Coerce partners into taking out loans
- Accumulate debts in another person’s name
- Control access to finances and banking services
- Deliberately damage a victim-survivor’s credit standing
Micaela Cronin, Domestic, Family and Sexual Violence Commissioner, welcomed ARCA’s Principles of Best Practice, stating:
“Economic abuse can have long-lasting impacts on a person’s safety, financial wellbeing, autonomy, and ability to recover from domestic and family violence. These Principles are a positive example of industry recognising its role in preventing further harm and supporting people impacted by violence to rebuild financial independence. Addressing economic abuse requires ongoing action across government, industry and the community sector. Coordinated industry action can help ensure that people impacted by domestic and family violence can recover, rebuild and participate fully in economic life.”
ARCA has highlighted that access to credit can be a critical factor in enabling someone to safely leave an abusive situation. Equally important is ensuring that inappropriate credit information resulting from abuse can be corrected so individuals can rebuild their financial independence.
ARCA’s Principles of Best Practice: Family and Domestic Abuse and Credit
ARCA’s guidance establishes five core areas of best practice for organisations involved in credit reporting and lending:
- Accurate Credit Reporting
Ensuring that credit information reflects a person’s true circumstances and that processes exist to investigate and correct records impacted by family and domestic abuse.
- Accessible Services
Making it easy for victim-survivors to seek support and report concerns without unnecessary barriers.
- Staff Capability
Providing employees with training and awareness so they can recognise indicators of abuse and respond appropriately.
- Safety by Design
Embedding customer safety considerations into policies, processes, systems, and communication channels.
- Continuous Improvement
Regularly reviewing practices and seeking opportunities to improve customer outcomes as industry understanding evolves.
Together, the principles provide a practical framework for organisations to identify abuse-related credit issues earlier, respond with greater care and improve the way affected customers are supported.
They also signal a broader change in expectations. Financial services organisations are increasingly being asked to manage risk and compliance while also demonstrating fairness, empathy and genuine care in the way they support customers experiencing vulnerability.
As the industry continues to evolve, organisations that build safety, accessibility and compassion into everyday practice will be better placed to support customers and maintain confidence in the credit system.
Customer-Centred Design and Recovery-Focused Support
Customer-centred design is central to this change. When organisations invest in specialist support pathways, clear communication and capable staff, they reduce harm, strengthen trust and create more sustainable outcomes for both customers and the business.
This approach moves organisations away from purely transactional interactions and towards a deeper understanding of the lived experiences that shape a customer’s circumstances. It supports pathways that are accessible, practical and respectful, while reducing the need for customers to repeatedly retell distressing or traumatic experiences.
Importantly, a fairer and more compassionate approach does not dilute commercial discipline. It strengthens it. Treating people with dignity and respect can support recovery, improve engagement and build long-term confidence in the financial system.
The Francom Effect
For Francom, ARCA’s principles speak directly to the kind of industry we believe we must continue to build: one where credit management is technically accurate, commercially disciplined and deeply human. This is not just about compliance. It is about recognising that behind every account is a person, a family and often a story that requires us to listen carefully, act responsibly and do what is right.
Georgina’s vision for Francom is to help lead a more ethical, compassionate and trusted approach to credit and debt recovery across Australia. That vision is practical as much as it is aspirational: to set a higher standard for how organisations engage with customers experiencing vulnerability, hardship or abuse, and to show that strong commercial outcomes and genuine care can work together.
Our commitment is grounded in the FranValues: Listen, Inspire, Empower, Believe and Nurture. These values guide the way we communicate, the decisions we make and the outcomes we seek. Whether we are supporting a victim-survivor of abuse, working with a financial counsellor, considering the waiver of debt or helping someone rebuild after financial distress, our focus is on practical, respectful and recovery-focused solutions.
Good credit management requires more than process. It requires judgement, empathy, accountability and the courage to look beyond the transaction. By embedding these principles into our culture and daily practice, Francom aims to protect dignity, support recovery and help shape an industry that is safer, fairer and more human.