Arca welcomes Parliamentary report on financial abuse and calls for greater industry collaboration

Catherine Fitzpatrick

The industry association says there is an opportunity to uplift industry practice, and drive greater consistency in how financial institutions engage with individuals who suffer financial abuse.

Arca, the peak association focussed on the use of credit reporting and consumer data, has welcomed the Parliamentary Joint Committee on Corporations and Financial Services, and called for greater industry collaboration in addressing the issue.

Elsa Markula, Arca’s CEO, said: “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.”

“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.”

Arca has undertaken an extensive consultation process over the last few years, which involved engaging with a range of specialists, including lived experience experts, financial counsellors, community legal services, and government organisations. As part of this, Arca engaged social enterprise, Flequity Ventures, who worked with research partners, Centre for Women’s Economic Safety, the Independent Collective of Survivors, and the Institute of Non-Violence, to conduct lived experience research.

The research, which involved surveys and interviews with victims and victim-survivors of domestic abuse, focussed on their experiences with credit products and interactions with credit providers. A roundtable on perpetrator perspectives was also conducted, along with subsequent workshops with Arca members to identify actions.

Based on insights from victims and victim-survivors of domestic abuse, Arca has identified a need for more consistency in how financial institutions engage with individuals who suffer abuse, alongside the flexibility to tailor responses to each individual’s situation. In response to the findings, the organisation is focusing on exploring industry-led initiatives to empower victims and victim-survivors.

Speaking about the project, Catherine Fitzpatrick, Founder & Director, Flequity Ventures said: “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 have already undertaken to support victims and victim-survivors of domestic abuse, including advocacy for targeted regulatory relief and associated amendments to industry codes. Arca will be commencing broader stakeholder consultation in 2025.