Disputes with banks or credit providers

You can make a complaint to AFCA if you have already tried to resolve your dispute with the bank or credit provider or if they have started a court case against you.

If you receive a statement of claim and make a complaint to AFCA, the creditor generally can’t continue with the court case or enforcement action without AFCA's consent.

If the credit provider has started a court case or got a default judgment, you should make a complaint to AFCA as soon as possible. You should get urgent legal advice​.

The time limits to lodge a complaint with AFCA vary depending on the type of complaint.

If your complaint relates to changing your credit contract because of financial hardship or some unfair conduct by the lender under the national credit laws, you must generally make a complaint within:

• two years after a written response from the lender's IDR complaint process
  
• two years after the termination of the credit contract, whichever is later.
  

In all other situations (besides superannuation related complaints), you can lodge a complaint within two years after a written response from the lender's IDR complaint process, or six years from the date when you first became aware of the problem, whichever is earlier.

AFCA can handle complaints about superannuation, banking, credit cards, mortgages, general and life insurance, financial planning and investment advice. For example, you can apply to AFCA if: 

• ​your goods were repossessed by your lender without a default notice
  
• your lender has refused your application for a hardship variation
  
• your lender gave you an unsuitable loan
  
• you have been served with a statement of claim for a consumer credit debt and you want to apply for financial hardship
  
• your lender has incorrectly listed a default on your credit file.
  

AFCA can consider consumer credit complaints about credit providers for claims up to $1 million. Compensation is limited to $500,000. You should get legal advice to see if you are entitled to compensation.

You can lodge a dispute with AFCA:

• ​if you have unable to resolve your dispute with your lender, bank or credit provider, or  
  
• if you have been served with a statement of claim or are aware of a default judgment being enforced against you.
  

You can apply either by

• submitting online via the AFCA website
  
• submitting a complaint by email, fax, letter or phone.
  

Your application should include:

• your name and your contact details
  
• the details of your representative (if you have one) and information about if they will be getting money for helping you
  
• the name and contact details of your lender
  
• details of the service you received from your lender (for example, a policy or account number)
  
• details of the complaint and any attempts you made to resolve the complaint with your lender
  
• the outcome you are seeking and details of any financial loss you have suffered
  
• photocopies of supporting documents (for example, loan documents, letters from your lender, account statements and reports).
  

If you have been served with a statement of claim, you should tell the lender (the plaintiff) or their legal representative that you have lodged a dispute with AFCA. Remind them that they must not file for default judgment while the dispute is being considered.

If your application has been accepted, AFCA will contact your lender and try to resolve the dispute through negotiation and conciliation.

If the dispute can’t be resolved by agreement, AFCA will make a decision. If you agree to AFCA's decision, it will become binding on your lender. If you do not accept the decision, you should get legal advice.

If you were served with a statement of claim, it is not too late to file a defence if you do not agree with AFCA's decision. You should get urgent legal advice about the strength of your defence. The plaintiff (lender) can get default judgment if you do not file a defence within 28 days of when the statement of claim was served.

For more information, go to the AFCA website.