Consumer Credit Act 2025 · Updated to 31 Dec 2025 · Part VII · Business Conduct for Credit Consumer Protection
86. Financial hardship
Feedback & supportFor the purposes of paragraph 85(1)(h), the Commission may issue standards or guidelines under section 123 to specify—
Commission
“Commission” means the Consumer Credit Commission established under section 6;
the circumstances that qualify as financial hardship; and
the form and manner of assistance to be provided by a credit provider, if such specification is, in the opinion of the Commission, necessary or expedient.
In exercising its powers under subsection (1), the Commission shall ensure the standards or guidelines specified are—
standards or guidelines
“standards or guidelines” includes any obligation or requirement as specified by the Commission or a Regulatory and Supervisory Authority under section 123;
in the interest of the orderly functioning and development of the consumer credit industry, having regard to credit consumers’ continued access to credit; and
not detrimental to financial stability.
A credit consumer may apply for financial hardship assistance from a credit provider in respect of a credit agreement with the credit provider, where any circumstances of financial hardship as specified under subsection (1) applies.
credit consumer
“credit consumer” means any person as set out in subsection 5(1);
Upon receiving an application under subsection (3), the credit provider shall make an assessment to determine whether such assistance is to be provided to the credit consumer.
credit provider
“credit provider” means a person who carries on a credit business where the person— (a) is licensed under Part V of this Act; (b) is permitted to do so under any other written law; (c) is subject to the Hire-Purchase Act 1967; or (d) is subject to the Consumer Protection Act 1999;
During an assessment under subsection (4), the rights for the credit provider to commence any proceedings, execution or other legal process against the credit consumer shall be suspended.
Where the credit provider is satisfied that financial hardship assistance is to be provided, the credit provider shall determine the form and manner of assistance to be given, unless the Commission has issued a specification on such matter under paragraph (1)(b).
Consumer Credit 75
credit
“credit” means any arrangement, agreement or facility as set out in subsection 5(2);
Prohibited business conduct