Pitfalls, Complaints and Free Help
Personal loan complaints and free help: AFCA, ASIC, Moneysmart and the National Debt Helpline
How to complain about a lender in Australia, internal dispute resolution timeframes, lodging a free AFCA complaint, reporting to ASIC and the OAIC, and where to get free financial counselling.
If you have a problem with a personal loan, complain to the lender first through its internal dispute resolution (IDR) process; it must generally give you a final response within 30 calendar days (shorter timeframes apply to some hardship-related matters). If you are unhappy with the answer or it is late, lodge a free complaint with the Australian Financial Complaints Authority (AFCA), online or on 1800 931 678. For free, independent help with debts, budgets, hardship notices or negotiating with lenders, call the National Debt Helpline on 1800 007 007. ASIC's Moneysmart website has independent guides and calculators.
This guide is part of personal loan mistakes to avoid. Contact details and timeframes are as published by the bodies concerned; check their websites for any updates.
Who does what
| Body | Role | Use it for |
|---|---|---|
| The lender's complaints team (IDR) | First step for any complaint | Fees, errors, hardship refusals, unsuitable lending, poor service |
| Australian Financial Complaints Authority (AFCA) | Free, independent external dispute resolution for members (licensed lenders, brokers, BNPL providers) | Complaints the lender did not resolve |
| Australian Securities and Investments Commission (ASIC) | Regulator of consumer credit; licenses lenders and brokers | Reporting misconduct, checking licences; ASIC does not resolve individual disputes |
| Moneysmart (ASIC) | Free consumer guides and calculators | Understanding loans, budgeting, scams |
| Office of the Australian Information Commissioner (OAIC) | Privacy and credit reporting regulator | Credit reporting complaints not resolved by the body or lender |
| National Debt Helpline | Free, confidential financial counselling | Budgets, hardship notices, negotiating with creditors |
| Community legal centres and Legal Aid | Free legal advice | Unsuitable lending, guarantees, court action |
| Scamwatch (National Anti-Scam Centre, ACCC) | Scam reporting and warnings | Loan scams and fake lenders |
Step 1: Complain to the lender
ASIC's Regulatory Guide 271 sets standards for internal dispute resolution. In general:
- the lender must accept complaints by phone, email, online or in writing,
- it must acknowledge your complaint promptly,
- it must give a final written response within 30 calendar days for most complaints, and
- where the complaint is about a hardship notice or a request to postpone enforcement, a shorter timeframe of 21 days generally applies.
If it cannot resolve the complaint in time, it must tell you why and inform you of your right to go to AFCA.
What to include
- Your name, account number and contact details.
- What happened, with dates.
- What you want — for example, a refund of fees, a hardship variation, correction of a credit listing, or compensation.
- Copies of relevant documents: contract, statements, emails, notes of calls.
Keep a record of every contact.
Step 2: Lodge a complaint with AFCA
AFCA is free for consumers. You can lodge:
- online through the AFCA website,
- by phone on 1800 931 678, or
- by email or post.
| Timing | General rule |
|---|---|
| After the lender's final IDR response | Within two years of that response, in most cases |
| If you never received a response | AFCA may accept the complaint once the IDR timeframe has passed |
| Overall | Usually within six years of becoming aware of the loss; special rules for some credit complaints |
Lodging a complaint with AFCA generally means the lender must not take further debt recovery action while AFCA is handling it, with some exceptions. AFCA can help negotiate, recommend outcomes or make binding determinations on the lender if you accept them. Check AFCA's rules for exact timeframes for your complaint type.
Types of personal loan complaints AFCA deals with
- loans that were unsuitable or not affordable when made (responsible lending),
- refused or unreasonable hardship responses (hardship notices),
- incorrect fees, interest or payout figures (fees guide),
- incorrect credit reporting by the lender,
- misleading advertising or mis-sold add-on insurance,
- debt collection conduct.
Step 3: Report misconduct to ASIC
ASIC does not resolve individual disputes, but reports help it identify problems across the industry. Report:
- unlicensed lending or credit assistance,
- fees above legal caps on small or medium amount credit contracts (caps guide),
- misleading credit advertising, including missing comparison rates (comparison rate guide).
Free help
| Service | Contact | Help with |
|---|---|---|
| National Debt Helpline | 1800 007 007; ndh.org.au | Financial counselling, sample letters, hardship |
| Mob Strong Debt Help | 1800 808 488 | Free legal advice and financial counselling on money matters for Aboriginal and Torres Strait Islander people |
| Moneysmart | moneysmart.gov.au | Independent guides and calculators |
| Community legal centres and Legal Aid | Through your state or territory | Legal advice on credit and debt |
| Lifeline | 13 11 14 | If money stress is affecting your wellbeing |
Illustrative example
A borrower was approved for a $15,000 personal loan while their bank statements showed several payday loans and repeated dishonours. Within months they were missing repayments. They:
- gave a hardship notice and asked for a copy of the lender's suitability assessment,
- complained to the lender that the loan was unsuitable, and
- after an unsatisfactory final response, lodged a complaint with AFCA with help from a financial counsellor.
The outcome in any such case depends on the facts and AFCA's assessment; possible results include changes to repayments or refunds of interest and fees. The key steps — hardship first, IDR complaint, then AFCA — apply generally.
Official sources for personal loan information
- Federal Register of Legislation — National Consumer Credit Protection Act 2009, the National Credit Code (Schedule 1) and the National Consumer Credit Protection Regulations 2010.
- ASIC — regulatory guides, including RG 209 (responsible lending), RG 271 (IDR) and RG 281 (low cost credit contracts), and the professional registers.
- OAIC — credit reporting rights and the Privacy (Credit Reporting) Code.
- Moneysmart — consumer explanations and calculators.
Frequently asked questions
Does AFCA cost anything?
No. AFCA is free for consumers. Its costs are funded by member firms.
Can I go to AFCA without complaining to the lender first?
AFCA will usually refer you back to the lender first to give it a chance to resolve the complaint through IDR, unless the IDR timeframe has already passed.
Will complaining affect my credit report?
Making a complaint does not itself go on your credit report. If you are disputing a listing, you can ask for the information to be corrected.
Can a financial counsellor talk to the lender for me?
Yes, with your authority. Financial counsellors regularly negotiate with lenders on behalf of clients, for free.
Sources and where to check
- Australian Financial Complaints Authority — lodge a complaint, 1800 931 678
- ASIC — report misconduct; RG 271 on internal dispute resolution
- ASIC Moneysmart — guides and calculators
- National Debt Helpline — 1800 007 007
- Office of the Australian Information Commissioner — credit reporting complaints
- Federal Register of Legislation — consumer credit legislation
