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Financial hardship assistance and your credit score: 5 myths busted With rising interest rates and the cost of living continuing to put pressure on household budgets, many Australians are feeling overwhelmed.  If you’re struggling to keep up with repayments, it’s important to know that you’re not alone and there are options available to help  Understanding the mechanics of credit reporting and financial hardship assistance can help you make more confident decisions about seeking support when you need it most. Elsa Markula, CEO of Arca – Australia’s peak credit reporting body – suggests that a good place to start is simply understanding how credit reporting works . “Your credit report is a record of your credit accounts and your repayment history. Credit reporting bodies maintain this information, and lenders use it when assessing applications for credit, such as a loan, credit card or Buy Now Pay Later account,” Elsa explains. But, because life does not always go to plan, there may be situations when you may not be able to meet, or only partially meet, your repayments. In such situations, which can happen to anyone and are nothing to be ashamed of, Elsa encourages reaching out for help if you’re struggling. There are several tools or processes that can be of assistance at such a time. "If you find yourself unable to meet your repayments, please ask your lender for financial hardship assistance. An arrangement allows your repayment obligations to be adjusted for a period, giving you the breathing room to get back on track,” she says.  To help you feel more confident about your options, here are five common myths about financial hardship assistance and the facts you need to know.   Myth 1: Asking for hardship help means you’ve failed financially Many people feel embarrassed about speaking to their lender when they’re struggling with repayments. But financial hardship can happen to anyone. Unexpected events such as job loss, illness, natural disasters, relationship breakdowns or rising living costs can affect even the most careful planners. Lenders understand this. In fact, lenders have established hardship programs designed specifically to support customers through temporary financial difficulty. Reaching out early isn’t a sign of failure, it’s a proactive step toward managing your situation and finding a workable solution.   Myth 2: If you ask for help, your credit score will drop This is one of the most common misconceptions. Under Australian law, financial hardship information cannot be used by credit reporting bodies to calculate your credit score. A hardship arrangement may appear on your credit report, but it does not lower your credit score. What does matter for your credit report is whether repayments are missed. A hardship arrangement can actually help prevent repeated missed payments from being recorded.   Myth 3: It’s better to miss a payment than ask for hardship Some people delay contacting their lender because they think they can “catch up later.” But missed payments can stay on your credit report and may affect future credit applications. A financial hardship arrangement can help avoid this situation. When an arrangement is in place, your repayment history reflects whether you meet your obligations as agreed to with your hardship arrangement. That means seeking help early can help protect your credit report and reduce financial stress.   Myth 4: A hardship arrangement will stop you from getting credit in the future Having hardship information on your credit report does not automatically prevent you from accessing credit later. If you apply for credit in the future, a lender may simply ask questions about your current circumstances to understand whether the hardship situation has passed and whether you can comfortably afford repayments. It’s also important to know that hardship information remains on your credit report for 12 months after the final repayment under the arrangement, after which it is no longer visible.   Myth 5: You should wait until things get really bad before asking for help Many people wait until they’re already behind on payments before contacting their lender. But the earlier you reach out, the more options may be available to you. For example, lenders may offer temporary payment pauses, smaller repayments or other tailored arrangements depending on your circumstances. Seeking help early can help ease your financial pressure, help avoid fees or negative repayment history, and give you breathing room while you get back on track.   Information sourced from: COBA Read about how we can help you here: Financial Hardship | Bank Orange

How to manage and protect your passwords to keep you safe online Passwords form the foundation of our online safety, whether that’s banking, healthcare, or even our social connections. If they’re weak or reused, they can make you vulnerable to criminals. “When your data is leaked in a breach, scammers can use it to impersonate you, trick you into clicking malicious links, or try your passwords on other websites. They might even use that stolen information to lock your files and demand a ransom,” COBA Head of Financial Crimes and Cyber Resilience Martin Latimer said. Strong passwords are our first line of defence against cybercriminals, and amid rising data breaches across Australia, there’s never been a greater need for good password hygiene. To help you figure out the best way to strengthen your passwords - and why this matters - COBA’s Financial Crimes and Cyber Resilience team have put together some simple tips.   Why does password hygiene matter? Data breaches can be a goldmine for scammers, providing them with a trove of personal and payment information that can then be exploited. In the first six months of 2025, over 10,000 individuals were affected by cyber incidents, with malicious or criminal attacks comprising the largest source of data breaches, according to the Office of the Australian Information Commissioner. “Having strong passwords is crucial to ensure cybercriminals can’t access your banking, government or healthcare accounts or target you with malware,” Latimer explained.   How to build stronger passwords Strengthening your passwords doesn’t mean making them harder to remember — it means making them harder to crack. Longer, word-based phrases (known as passphrases) are usually a strong choice. Consider a string of random words that only you can stitch together to create a unique phrase (for example: “train hall idea work” or “television table bottle snack”). Avoid using personal information or common, predictable words. “Safe passwords typically have 10 or more characters - the longer, the better! You should further strengthen your password by combining uppercase letters, lowercase letters, numbers and special symbols, including swaps like ! for 1 or @ for A,” Latimer said.   Managing your passwords It’s important not to share your passwords with anyone - including loved ones - and to ensure you are using different passwords for your various accounts. Always enable multi-factor authentication (MFA) wherever it’s available. This adds two or more verification methods to create an extra layer of safety on your accounts. MFA may involve passkeys, one-time passwords (OTPs), or biometric verification. Additionally, pay attention to where your passwords are being saved. “While many may do this for convenience, blindly saving your passwords in your browser to be auto-filled can put your cybersecurity at risk,” Latimer cautioned. Instead, opt for a reputable password manager with a strong master password. Ensure it offers strong privacy and security features such as encryption, MFA, and alerts if your passwords have been exposed in a breach.   What to do if your passwords have been compromised It’s important to be aware of the signs of a data breach so you know if your password has been compromised. Look out for suspicious activity such as unauthorised transactions, unfamiliar log-ins, unsolicited password resets, or alerts from financial institutions or service providers (even those you don’t normally use). You can also check if you were affected by a data breach using platforms such as Have I Been Pwned. If you believe your passwords may have been compromised, take immediate action to secure your accounts. Update your passwords across important accounts and run anti-virus software on your devices (including your phone) to check for ransomware. If you are contacted by someone you suspect is a scammer, report the scam to the National Anti-Scam Centre – Scamwatch to help protect others. For more information on how you can strengthen your online safety and keep your personal information secure, visit Cyber.gov.au.

9 ways to spot financial abuse – and what your customer-owned bank can do about it Financial abuse is a form of domestic violence where money is used to control, track or trap someone, and it occurs in nearly all cases of domestic violence.  Financial abuse may see victim/survivors lose access to their money, be manipulated into making financial decisions, or even be pressured to sign over documents or take on debt. Customer-owned banks are dedicated to disrupting financial abuse, and have joined forces with financial safety expert Catherine Fitzpatrick, Founder of Flequity Ventures, and other banks and finance firms to launch the Financial Safety Alliance.  “Everyone, including businesses and banks, has a role to play if we are going to meet the ambition of ending gendered violence in a generation,” Ms. Fitzpatrick said.  “Research shows that women are more likely to talk to their bank about economic abuse than to a specialist family violence service provider. This is because money gives you choices – to leave, to disentangle and to start again.”  Because financial abuse relies on control and secrecy, it is often hidden, leaving victims/survivors unaware they are being targeted.   Here are some of the warning signs of economic and financial abuse.    1. Total control of household income One of the most common signs of financial abuse is when one person assumes complete control over all household earnings, regardless of who earned them. They might decide how every cent is spent and force the other person to ask for an "allowance." This often involves withholding funds for basic necessities like food, medicine, or clothing, creating a state of total dependency.   2. Unauthorised accumulation of debt This occurs when an abuser opens credit cards or takes out loans in a partner's name without their knowledge or consent. They may also pressure someone to increase credit limits or force them to act as a guarantor for loans they cannot afford. This tactic leaves the victim legally responsible for debt they did not create, damaging their credit score and future financial freedom.   3. Misuse of joint accounts and assets Joint accounts are frequently exploited, especially during times of relationship strain or separation. A perpetrator might drain a mutual mortgage offset account or withdraw large sums of money without agreement. In other cases, they may refuse to contribute to mortgage payments or sell shared property without permission, effectively sabotaging the other person's housing security.   4. Digital surveillance and financial stalking Modern banking tools are sometimes weaponised to track a victim's movements and behaviours. An abuser might monitor purchase descriptions to figure out where a partner has been or what they are buying. They may also use the description fields in digital bank transfers to send abusive or harassing messages, turning a standard financial transaction into a tool for emotional harm. This was a tactic used by the first perpetrator to be jailed under NSW coercive control laws.   5. Exploitation and theft of personal funds This involves the direct taking of money that belongs solely to the victim. Examples include taking money from a partner's pension or superannuation without permission, selling their personal belongings without consent, or even failing to pay them for work performed in a family business. It is a direct violation of personal property rights designed to keep the victim broke.   6. Deliberate sabotage of employment and education To ensure a victim cannot become self-sufficient, an abuser may prevent them from attending work or getting a job. This can involve sabotaging their ability to attend important meetings, blocking access to education or training, or even harassing the person’s colleagues at their workplace. By destroying a person's career prospects, the abuser ensures they remain trapped financially.   7. Intentional financial neglect In this scenario, an abuser withholds financial support despite having the means to provide it. This includes neglecting to pay child support or refusing to contribute to household expenses. Often, they will force utility bills like electricity and gas into the victim's name only, ensuring that if the bills aren't paid, the victim’s credit is the only one destroyed.   8. Destruction of property and gambling Financial stability is also threatened through the physical destruction of property or the reckless use of shared funds. An abuser might damage or steal property to cause financial distress or gamble with money meant for rent and bills. These actions create a constant state of financial crisis that makes it difficult for a victim to plan for the future or escape.   9. Information withholding and account blocking A key element of control is the denial of information. An abuser may hide details about their own income or the total household wealth while simultaneously blocking the victim’s access to bank accounts. By keeping the victim in the dark about their financial reality, the abuser maintains a power imbalance that makes independent decision-making impossible.   Identified signs of financial abuse? Here’s how your customer-owned bank can help If you believe you are experiencing financial abuse, your customer-owned bank can provide various forms of assistance to help secure your finances. For example, they can look into suspicious activity by investigating any transactions that you did not personally authorise. They can also assist in updating your online banking credentials, contact information, and account PINs, to further protect your privacy and access.  Additionally, your bank can help you set up entirely new accounts or facilitate other banking services to ensure you have a safe and independent way to manage your money. Financial abuse can happen to anyone, and the abuser could be a partner, a family member, carer or friend. Remember, financial abuse is never your fault.  The Financial Safety Alliance, founded by social enterprise Flequity Ventures, brings together the Customer Owned Banking Association, the Australian Banking Association, the Australian Finance Industry Association and Arca. This alliance will help more than 200 banks and lenders to disrupt financial abuse through safer product and service design. Through this coordinated action, Australia is setting a new benchmark for how financial institutions can work together to prevent abuse and safeguard customers. More information here.