The outgoing head of the Australian Securities and Investments Commission will deliver the advice in his final keynote speech at a conference on Thursday, before he packs up his desk at the end of this month.
"These are difficult times for many people in Australia, which makes it all the more pressing that lenders support customers experiencing financial hardship," chair Joe Longo will say.
"We are not taking a backwards step on this issue and are continuing to keep an eye on how lenders are supporting their customers.
"And if hardship supports break down, debt management and credit repair services should not leave people in even greater financial difficulty."
In July, when deputy chair Sarah Court takes over from Mr Longo, the commission will release a report on high-fee debt management and credit repair services.
ASIC will also issue another report on debt collection and motor vehicle financing later in the year.
"And let me be clear, if a model thrives on pressure, opacity, or harm, ASIC will step in," Mr Longo will tell attendees at the Financial Counselling Australia conference in Cairns.
Mr Longo, who has been chair since 2021, also defended the commission's work after it was forced to up its game and rebuild confidence in the wake of damning findings from the 2019 banking royal commission.
The inquiry uncovered widespread financial sector misconduct that hurt consumers and pinged the regulator for failing to hold firms to account.
"Accountability works best when it is seen and when it is felt," Mr Longo will say in the speech.
"That means regulators cannot work from behind closed doors - and watchdogs need to both bark and bite to be effective."
Looking ahead, Mr Longo said the commission will continue its focus on financial literacy via its Moneysmart website, in particular trying to protect Australians from superannuation scams.
"Most recently, we have witnessed unscrupulous actors trying to exploit the significant pot of money in our superannuation system through what we suspect is industrial-scale misconduct," Mr Longo will say.
"Everyday Australians who signed up for a free super check have instead lost their life savings."
Mr Longo will also decry the practice of "lead generation" by funds using cold calling to encourage people to switch their super with promises of big returns, often at greater risk.
In recent times, the practice has left thousands of investors who moved to the Shield Master and First Guardian Master funds facing collective losses of more than $1 billion.
The federal government, which is planning changes to super switching, should ban unlicensed communications about superannuation, he will argue.
"We wouldn't let someone perform heart surgery just because they've watched a lot of ER," Mr Longo will say.
"Therefore, we shouldn't let people who aren't qualified lure Australians into losing their life savings and turn a profit from it."
