The path is two-stage: the provider first, then an external scheme
If you have a loan or debt problem that keeps going around in circles — a repayment arrangement that was never applied, a hardship request that went quiet, a fee or default you believe is wrong, a collector who won't accept what you've already told them — the usual sequence in Australia is to complain to the business first and, if that doesn't fix it, take the matter to an external dispute resolution scheme.
The Australian Competition and Consumer Commission (ACCC) frames it this way: "If you complain directly to a business about a debt, but it doesn't resolve your issue, then a dispute resolution scheme may be able to help you." That ordering matters. External schemes are generally a second step, not a substitute for telling the provider what's wrong.
Making the provider stage work properly is worth the effort. It creates a written record, and that record is what an external scheme will later look at.
Step one: lodge a formal complaint with the provider
Most financial businesses run an internal dispute resolution process. Day-to-day customer service is often not the same thing as a formal complaint, so ask specifically for the complaints team and how to lodge a complaint in writing. If the underlying issue is your ability to pay rather than a mistake, ask for the financial difficulty or hardship team instead.
A written complaint is easier to escalate than a phone call. Include:
- your account, loan or contract reference number
- dates of the calls, messages, letters or transactions involved
- what actually happened, in order
- what you have already asked for, and what you were told
- the outcome you're seeking
- copies of supporting documents (statements, letters, screenshots, medical or employment evidence if relevant to a hardship request)
- how the problem is affecting you
Ask for a complaint reference number and the name of the person or team handling it. Keep it factual and short; a clear timeline is more useful than a long narrative.
Step two: let the process run, and keep a log
Keep a simple running record: date, who you spoke to, what was said, what was promised and by when, and any reference numbers. Save emails, letters and SMS.
This does two jobs. It means you can show exactly what the provider did and didn't do if you escalate, and it stops the same ground being covered again every time a new person picks up the file.
Step three: if it's still unresolved, look at external dispute resolution
Where the provider's own process doesn't resolve the issue, the ACCC points to dispute resolution schemes. The scheme it names on its debt help page is the Australian Financial Complaints Authority (AFCA).
Two practical points about what escalation can and can't do.
First, a scheme generally looks at how the business handled things — whether it followed its obligations, responded properly, and dealt with your circumstances fairly. It is a review of conduct, not a guarantee that the debt disappears.
Second, an outcome can go either way. A scheme may decide the provider acted appropriately and that the debt still stands. If your real problem is that you cannot afford the repayments, an external complaint may not change that, which is why the two tracks below often need to run together.
Which pathway applies to which kind of debt
Coverage depends on the type of debt and on who the provider is, so confirm it rather than assume.
| Type of debt | Where the ACCC directs complaints |
|---|---|
| Financial and credit products, including loans | The Australian Financial Complaints Authority (AFCA), named on the ACCC's debt help page |
| Energy debt | Energy ombudsman schemes, per the ACCC |
| Phone or internet debt | The ACCC addresses complaints about phone and internet debt separately — check its page for the correct scheme |
If your provider is a small business, an unlicensed lender, or a debt buyer, check whether a scheme covers them before you invest time in an application.
When the real problem is affordability
A complaint is about conduct. Financial difficulty is a separate problem, and it needs separate help. The Australian Financial Security Authority (AFSA) notes that "debt problems can happen to anyone for a range of reasons" and that "if you're in financial difficulty it can be hard to know where to go for help." Its material points to free help with your debt and with dealing with creditors.
That free help is worth using early. A financial counsellor can help you work out what you can realistically afford, communicate with creditors, and understand your options before anything escalates further.
AFSA also publishes information on what may happen to your debts, assets, income, employment, credit and ability to travel, so you can judge whether a formal option is right for you. That matters because formal debt options carry consequences that are difficult to undo. Read the consequences before agreeing to anything, and get advice from a qualified professional rather than relying on a summary.
If your complaint is about AFSA's own handling of a matter rather than about the lender, AFSA publishes a complaints and review process, including how to appeal a decision. Its material also covers the creditor's side of a debt agreement, which can be useful context if several creditors are involved.
Questions to verify for your own situation
- Which dispute resolution scheme covers this provider and this type of debt?
- Does the scheme require you to finish the provider's internal process first, and is there a time limit?
- What evidence will the scheme expect to see?
- Can I keep making payments, or request a pause, while the complaint is assessed?
- Could a complaint or a formal debt option affect my credit report? Ask the scheme and a counsellor rather than guessing.
- Is the person charging me for help licensed, and are they acting for me or for a creditor?
Next steps
- Write down the problem, the dates, and the outcome you want.
- Lodge a formal written complaint with the provider and keep the reference number.
- Keep a dated log of every contact.
- If the provider doesn't resolve it, check the ACCC's debt help page to identify the right scheme — AFCA for many financial and credit complaints, energy ombudsmen for energy debts.
- If the debt itself is unaffordable, use AFSA's guidance to find free help at the same time, not afterwards.
- Before agreeing to any formal debt option, read what it means for your assets, income, employment, credit and travel.
If you're working through a home loan dispute while also weighing up your options, our home loan guide at /money/home-loans/ covers the lending side in more detail.
General information only
This article is general information about how debt and loan complaints are usually escalated in Australia. It is not legal, financial, tax, credit or migration advice, and it isn't a substitute for advice from a lawyer, financial counsellor or licensed professional about your circumstances. Australian Cash is an independent publisher: we are not a lender, broker, government body, regulator or comparison service, and we don't administer complaints or dispute resolution. Scheme coverage, processes and contact points can change, so confirm the current details with the ACCC, AFSA, the relevant scheme or your provider before acting.