You need to act urgently if you have received a default notice and/or the lender is threatening legal proceedings. You ought to straight away:

  1. Forward a page towards the lender requesting a variation of the agreement due to hard­ship (for those who have perhaps perhaps maybe not sent one). The lender and ask for a variation on the grounds of financial hardship if this is not possible ring.
  2. Lodge an application in writing or online in EDR, scheme, which will be administered by the Australian Financial Complaints Authority (AFCA). Its contact information are:
  • Ph: 1800 931 678
  • E-mail:
  • Internet:

ESSENTIAL: The lender cannot commence court procedures against you once you’ve lodged a written dispute with AFCA before the dispute is set (or AFCA considers it cannot think about your dispute).

3. Get advice that is legal.

IF a STATEMENT has been received by you OF CLAIM

  1. In NSW you have got 28 days through the date you might be offered by having a declaration of claim to register a defence. Following the 28 times has elapsed the financial institution can use for judgment. It is suggested you lodge with AFCA rather than file a defence in Court. You have to lodge with AFCA prior to the loan provider will get judgment, so lodge with AFCA at the earliest opportunity. (See point 2 above).
  2. You will immediately get an acknowledgment that the dispute has been lodged if you lodge online with AFCA.
  3. After you have lodged in EDR the financial institution should never connect with get judg­ment before the matter is managed by AFCA.
  4. In the event that loan provider continues to be threatening to obtain judgment ring AFCA on 1800 931 678 and let them understand this to get legal services.


If for example the loan provider is limited by the Code of Banking Practice (banking institutions), the consumer Owned Banking Code of Practice (credit unions / building communities) or an associate of this Mortgage & Finance Association of Australia then those lenders have responsibilities to utilize you if you should be in monetaray hardship. These responsibilities may protect your loan regardless if the Code will not use or you may be a business that is small investment debtor. You need to use a breach of these responsibilities as being a good explanation to whine to AFCA.

You ought to still contact the lending company and explain your position. Require a decrease (or postponement) in your repayments for time period. In the event that lender agrees, verify the contract on paper. Keep a duplicate for the page. In the event that loan provider will likely not concur, you really need to keep making several of your repayments (when you can) to get advice from the monetary counsellor and/or claim to AFCA, should your lender is a part.

In the event that loan provider will likely not accept a noticeable change in repayments have advice. If court procedures are commenced, you have to get legal counsel instantly.

In case your financial hardships could be long haul, it is strongly suggested you receive a monetary counsellor to work with you.


See our help that is getting fact for a listing of additional resources. If you’re in monetaray hardship by having a true house loan see our home loan anxiety reality sheet.

Final updated: September 2019.

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