You would think that banks, of all places, would be the ones to offer a hand when you’re struggling financially. Yet, recent reports show that many Australian banks are ignoring or offering cookie-cutter responses to customers seeking help with hardship. It’s becoming an alarming trend, and unfortunately, it\u2019s a reality many people are dealing with.<\/p>\n
In 2024-2025, over 2,900 customers reported their banks failed to respond to requests for hardship assistance, reports The Guardian<\/a>. That\u2019s a shocking number, and it\u2019s been rising for years. Despite various regulatory crackdowns and repeated warnings, banks continue to let their customers down during difficult times. According to Natalie Cameron, the lead ombudsman for banking and finance at the Australian Financial Complaints Authority (Afca), people\u2019s requests for help are still being ignored. The worst part? Many of the responses that do come through are automated and don’t take into account the individual circumstances of the customer.<\/p>\n It\u2019s a frustrating cycle that doesn\u2019t seem to end. The big banks are guilty of relying too heavily on automated systems, generating responses that feel more like a template than a genuine effort to understand someone\u2019s unique situation. Smaller lenders aren\u2019t much better\u2014they often don\u2019t even have automated systems in place to address these hardship requests at all. So, where does that leave the person on the other end of the line? Likely feeling helpless and unheard, if not worse.<\/p>\n Domenique Meyrick, CEO of Financial Counselling Australia, points out that this situation is out of hand. She explains that when customers reach out for support, they often don\u2019t get the help they need. And it\u2019s not for lack of trying\u2014the teams at these banks may be undertrained or unsupported, leaving customers stuck in a frustrating limbo. \u201cThere\u2019s no excuse for silence when someone\u2019s asking for help,\u201d she says. And she\u2019s right. When banks fail to respond to requests for repayment relief, it doesn\u2019t just damage their relationship with the customer. It can worsen the financial situation, pushing people into even more debt.<\/p>\n The consequences of this are serious. When banks don’t respond to requests for payment flexibility or extensions, it forces some people to turn to high-risk borrowing just to make ends meet. This can lead to a vicious cycle of worsening debt, with no real support from the institutions that should be helping.<\/p>\n While the Australian Securities and Investments Commission (Asic) has taken action against some major players like ANZ and NAB\u2014both of which have faced financial penalties\u2014there\u2019s still a long way to go. These ongoing failures highlight the need for better systems, more empathetic responses, and ultimately, more human support from banks during times of financial hardship.<\/p>\n The surge in hardship requests, driven by cost-of-living pressures, shows that many Australians are struggling more than ever. Victoria, in particular, has recorded the highest number of hardship requests, which reflects the broader economic challenges many are facing. It’s no surprise, then, that Afca has received over 100,000 complaints about financial institutions in just one year.<\/p>\n Unfortunately, as one financial counsellor, Claire Tacon, points out, too many borrowers are left confused about their rights. They call their banks<\/a> in search of leniency, only to be met with silence or inadequate help. When that happens, she advises people to contact Afca directly. While Afca can sometimes resolve issues, it often comes after unnecessary stress and anxiety.<\/p>\n One particular case stands out: a long-time bank customer, struggling with financial hardship in both 2022 and 2023, found herself receiving a default notice from her bank after reaching out for help. Afca found the bank had acted improperly and ordered it to pay her $2,250 in compensation. It\u2019s one small victory, but it highlights a larger problem that\u2019s affecting many Australians.<\/p>\n \u00a0<\/p>\n\n\nThe Pitfalls of Automated Bank Systems<\/h2>\n
The Human Cost<\/h2>\n
Regulatory Actions, But Not Enough<\/h2>\n
A Step Toward Resolution<\/h2>\n