Arca urges for regulatory reforms on financial abuse

Arca, an association focused on credit reporting and consumer data, has welcomed the parliamentary joint committee on corporations and financial services’ report and called for greater industry collaboration to tackle the issue of financial abuse in domestic relationships.

Arca’s CEO Elsa Markula highlighted the devastating impact domestic abuse can have on an individual’s creditworthiness and their relationship with the credit reporting system. She emphasised the need for further support for victims and victim-survivors interacting with the system.

“Arca and our members recognise the devastating impact domestic abuse can have on an individual’s relationship with credit, and how their creditworthiness is seen through the lens of the credit reporting system. More must be done to assist victims and victim-survivors when they and their representatives interact with the credit reporting system,” Markula said.

“We are strong supporters of the report from the Parliamentary Joint Committee, which is far-reaching and hugely significant. There is an opportunity to uplift industry practice and drive greater consistency in how financial institutions respond to financial abuse, which will see improved outcomes for victims and victim-survivors.”

In recent years, Arca has conducted extensive consultations with specialists, including lived experience experts, financial counsellors, community legal services, and government organisations.

This effort included working with social enterprise Flequity Ventures, which partnered with the Centre for Women’s Economic Safety, the Independent Collective of Survivors, and the Institute of Non-Violence to conduct research based on lived experiences.

The research, which involved surveys and interviews with victims and victim-survivors of domestic abuse, focused on their experiences with credit products and interactions with credit providers. Additionally, a roundtable on perpetrator perspectives was held, followed by workshops with Arca members to identify key actions.

The findings revealed a need for more consistency in how financial institutions engage with individuals suffering from abuse, as well as the flexibility to tailor responses to each individual’s situation.

In response, Arca is focusing on exploring industry-led initiatives aimed at empowering victims and victim-survivors.

Catherine Fitzpatrick, founder and director of Flequity Ventures, spoke about the ethical and trauma-informed approach taken during the research: “This research with victim-survivors was expertly facilitated within an ethical and trauma-informed framework by our project partners. It was complemented by insights from professionals who have between them more than 40 years’ experience working with men who use domestic abuse.

“This is an often overlooked part of the business response to domestic abuse, but it is an important input into consideration of customer service and accountability for perpetrators with safety at the heart.”

In response to the findings, Arca and its members are already supporting victims and victim-survivors of domestic abuse through advocacy for targeted regulatory relief and amendments to industry codes. The organisation plans to begin broader stakeholder consultations in 2025.

[RELATED: Levels of elder financial abuse increasing in WA: Bankwest]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.