Arca, the association focused on credit reporting and consumer data, has welcomed the recent findings of the Parliamentary Joint Committee on Corporations and Financial Services and called for stronger industry-wide collaboration to combat financial abuse.
Arca CEO Elsa Markula (pictured above) stressed the urgent need to address how financial institutions respond to victims and survivors of domestic abuse, particularly when navigating the credit 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,” Markula said. “More must be done to assist victims and victim-survivors when they and their representatives interact with the credit reporting system.
Markula expressed strong support for the Parliamentary Joint Committee’s report, describing it as “hugely significant” and “far-reaching.”
“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,” she said.
Over the past few years, Arca has engaged in an extensive consultation process with specialists, including financial counsellors, community legal services, and government agencies.
A critical component of this process was a partnership with social enterprise Flequity Ventures and research collaborators such as the Centre for Women’s Economic Safety, the Independent Collective of Survivors, and the Institute of Non-Violence.
The research incorporated insights from victim-survivors of domestic abuse through surveys and interviews, focusing on their experiences with credit products and financial institutions. Additional discussions were conducted to include perpetrator perspectives, an often-overlooked aspect of financial abuse responses.
Catherine Fitzpatrick, founder and director of Flequity Ventures, highlighted the importance of the project’s trauma-informed approach.
“This research with victim-survivors was expertly facilitated within an ethical and trauma-informed framework by our project partners,” Fitzpatrick said. “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.”
Arca’s research identified a clear need for more consistent practices across financial institutions while retaining the flexibility to tailor support to individual circumstances.
Victims and victim-survivors often face challenges engaging with credit providers, highlighting a gap in industry responses.
In response, Arca is exploring industry-led initiatives to better empower victims of financial abuse and drive meaningful, practical improvements. These initiatives include advocating for targeted regulatory relief and amending industry codes to better serve affected individuals.
Looking ahead, Arca and its members are committed to continuing their work in supporting victims of financial abuse. Broader consultation with stakeholders is scheduled to commence in 2025 to ensure a collaborative and unified industry response.
Markula stressed the importance of this work, noting that consistent industry action will help improve outcomes for those affected by financial abuse and enhance accountability for perpetrators.
With the release of this report, Arca hopes to inspire financial institutions to take proactive steps, ensuring their systems and processes better serve victims and survivors while fostering safety and financial empowerment.
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