Financial institutions are required to follow specific rules when dealing with customers. Understanding these rules gives you a clearer picture of where you stand and what steps may be available.
Understanding your position
Before taking any action, gather all relevant documents — statements, correspondence, loan contracts, and any records of conversations. Identify exactly what the dispute or concern is about and which institution or debt collector is involved.
Australian financial services are regulated under federal law. Banks and lenders must hold Australian Financial Services Licences and comply with responsible lending obligations.
Keep records of every conversation
Note the date, time, who you spoke with, and what was agreed. Written confirmation (email or letter) is always better than a verbal promise.
Financial hardship
If you're experiencing financial difficulty, you have the right to apply for a hardship variation. Banks and credit providers are required to consider your application and respond within specific timeframes. A hardship arrangement may include reduced repayments, paused payments, or a restructured loan.
Questions to ask before taking action
Is the debt correctly calculated? Check the amount claimed against your own records, including interest and fees.
Has the limitation period expired? Debts may become statute-barred after a certain period — rules vary by state.
Are you dealing with a licensed collector? Debt collectors must be licensed and follow strict conduct rules.
Have you explored hardship options? Contact your bank or lender to discuss available hardship arrangements.
Free resource
Prepare with the Rights Checklist
Use our checklist to organise the facts and supporting documents before you write.
Disclaimer: The information provided by Know Your Rights Group is for educational purposes only and does not constitute legal advice. Always seek independent legal advice for your specific situation.