Who must respond to hardship notices within statutory timeframe?
The applicability test for Respond to hardship notices within statutory timeframe (ASIC and AFCA), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Some businesses
Applies when the business has an ACL or credit activity and consumer customers.
What the obligation is
Credit providers must consider hardship notices within 21 days under s 72 NCC.
Section 72 of the National Credit Code requires credit providers to consider a hardship notice (oral or written) within 21 days. Variations include reduced payments, extended terms, payment freeze, or interest-only. Refusal must be communicated with reasons.
The applicability test
Applies when the business has an ACL or credit activity and consumer customers.
How the regulator frames it: Credit providers regulated under NCCP Act.
What triggers it: Receipt of a hardship notice from a consumer.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (2 of 35: yes; 33 of 35: no).
| Industry | Answer |
|---|---|
| Banks & ADIs | Yes |
| Credit licensees & mortgage brokers | Yes |
| No | 33 other industries |
Business structure and size
Structure does not change the answer in the 2 industries it can reach: for every structure the answer is "yes".
Size does not change the answer in the 2 industries it can reach: at every size band the answer is "yes".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in banks & adis with 6–19 employees, turnover $1M–$3M: applies. Authorised deposit-taking institution · Sells to consumers.
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires an ACL or credit activity and consumer customers.
Answers that bring it into scope
Starting from a small or large professional services company that does not otherwise meet the test, each of these single facts changes the engine's answer:
- The business holds an Australian credit licence (ACL): it then applies (ACL holder).
- The business provides credit to customers: it then applies (provides credit · Sells to consumers).
What you must do, and when
- When due
- Within 21 days of notice.
- Frequency
- When a triggering event occurs
- Evidence to keep
- Notice register, decision records with reasons, communications with consumer, AFCA complaints handling.
- Status
- Current
- Priority
- High
Penalty for not complying
Maximum penalty: Civil penalties to NCCP maximum; AFCA scrutiny + remediation.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Obligations with the same applicability test
If this obligation applies to you, so do these 3: the engine uses the same rule for each.
What usually applies alongside it
Across the 1,890 business profiles Rules Mate evaluates, these obligations apply to most of the businesses this one applies to, and are far more common among them than among businesses generally:
- Comply with credit reporting obligations (Part IIIA Privacy Act): applies to 100% of the same businesses (17.5× the overall rate)
- Register security interests on the PPSR: applies to 100% of the same businesses (17.5× the overall rate)
- Banking Code of Practice 2025: applies to 50% of the same businesses (17.5× the overall rate)
Where it sits in the corpus
Rules Mate tracks 8 published obligations tagged "credit", 5 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated high priority, and is triggered by events.
Regulator, legislation and tools
Regulated by Australian Securities and Investments Commission and Australian Financial Complaints Authority.
ASIC: Corporate regulator administering the Corporations Act, financial services and credit licensing (AFSL/ACL), markets supervision, insolvency, and registries (ASIC and ABRS).
AFCA: External dispute resolution body for financial services, credit, insurance, and superannuation complaints. Mandatory member scheme.
NCCP Act: Federal regulation of consumer credit.
Free tools that help with this obligation:
Questions
- Who must respond to hardship notices within statutory timeframe?
- Applies when the business has an ACL or credit activity and consumer customers.
- Do sole traders need to respond to hardship notices within statutory timeframe?
- Yes. Looking in the 2 industries it can reach and every size band, the engine's answer for a sole trader is: yes.
- Do businesses with 1–5 employees need to respond to hardship notices within statutory timeframe?
- Yes (1–5 employees, turnover $100K–$1M).
- When is "Respond to hardship notices within statutory timeframe" due?
- Within 21 days of notice.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.