How to Make a Complaint About an Australian Lender

Are you unhappy with the way a lender has handled your loan, repayments, fees or request for assistance?

You have the right to raise your concerns. In Australia, the usual first step is to contact the financial business. If the issue is not resolved, you can make a formal complaint through its internal dispute resolution process, commonly called IDR.

Moneysmart recommends making a formal written complaint if your initial contact does not resolve the problem.

If your complaint remains unresolved, you may be able to take it to the Australian Financial Complaints Authority, commonly known as AFCA. AFCA provides a free, fair and independent external dispute resolution service for eligible complaints about participating financial firms.

At Sunshine Loans, we believe you should be able to understand how the complaints process works and where you can turn for further help. This guide explains the usual steps.

How Do You Complain About an Australian Lender?

A practical complaint process is to:

Clearly identify the problem.
Gather relevant documents and records.
Contact the lender and explain your concerns.
Make a formal complaint if the issue is not resolved.
Explain the outcome you are seeking.
Keep copies of your communications.
Allow the lender to investigate and respond.
Consider AFCA if the complaint remains unresolved.

You do not need to know which law or regulatory rule may apply before you raise a concern.

Focus on what happened, how it affected you and what you would like the lender to do about it.

What Can You Complain About?

You may have grounds to complain when you are dissatisfied with a lender’s product, service, conduct or response to an issue.

Examples can include:

Fees or interest you believe were charged incorrectly.
Repayments that were not processed correctly.
A repayment arrangement not being followed.
Difficulty obtaining statements or account information.
Information on your credit file that you believe is inaccurate.
Concerns about how your financial circumstances were considered.
Inappropriate debt collection conduct.
Poor communication or unexplained delays.
The handling or rejection of a financial hardship request.
Failure to investigate an earlier concern.
An outcome you believe has not been adequately explained.

ASIC has reiterated that an expression of dissatisfaction can amount to a complaint for IDR purposes, regardless of how serious the issue is or how quickly it is resolved.

AFCA can consider a wide range of eligible complaints relating to credit, finance and loans, subject to its rules and jurisdiction.

Step 1: Be Clear About the Problem

Before you contact the lender, write down a simple timeline.

Include the key facts:

When the issue began.
What happened.
Who you spoke with.
What you were told.
What action you have already taken.
How the issue affected you.
Whether the issue is continuing.

Try to keep the main complaint separate from unrelated frustrations. A clear and factual summary can make it easier for the lender to understand what needs to be investigated.

For example:

On 4 June, a repayment was deducted twice from my account. I contacted the lender on 5 June and provided a bank statement, but one of the payments has not been returned.

This identifies the date, event and outcome that need to be investigated.

Step 2: Decide What Outcome You Want

Tell the lender what you would like it to do.

Depending on the circumstances, you might ask for:

A correction to your account.
A refund of an amount you believe was incorrectly charged.
Correction of inaccurate information.
An explanation of a decision.
A review of a financial hardship request.
A corrected statement.
A change in how the lender communicates with you.
Reimbursement of a financial loss you can demonstrate.
An acknowledgement or apology for poor service.

Keep your requested resolution connected to the problem.

You can also ask the lender to propose an alternative if it cannot provide the outcome you requested.

Step 3: Gather Your Supporting Documents

Relevant records can help the lender investigate what happened.

Depending on your complaint, these could include:

Your credit contract.
Loan or account statements.
Bank statements.
Repayment records.
Fee notices.
Default notices.
Emails, letters or text messages.
Screenshots of account information.
Notes from telephone conversations.
Financial hardship correspondence.
Relevant credit report information.
Receipts or evidence of financial loss.

Moneysmart recommends keeping your original documents and a copy of your complaint, and providing copies of relevant supporting material.

Only provide information that is relevant to the complaint. Never provide sensitive security details such as your online banking password or PIN.

Step 4: Make a Formal Complaint to the Lender

Depending on the lender, you may be able to complain by phone, email, online form or post.

A written complaint can be particularly useful because it gives you a record of what you raised and when.

Moneysmart recommends including the word “complaint” in the heading or subject line so that your communication is clearly identified as a formal complaint.

Include:

Your full name.
Your preferred contact details.
Your account or contract number.
The date.
A clear description of the issue.
Important dates and events.
Details of previous contact about the issue.
How the issue has affected you.
The outcome you are seeking.
Relevant supporting documents.

Sample Lender Complaint Letter

Subject: Formal complaint about loan account [account number]

Dear Complaints Team,

I am making a formal complaint about my loan account, [account number].

The issue is as follows:

[Explain what happened, including relevant dates, repayments, fees, conversations or decisions.]

I previously contacted you about this issue on [date]. I spoke with [name or department, if known], and I was advised that [briefly explain the response].

This issue has affected me by [explain any financial loss, inconvenience, account error or other effect].

To resolve my complaint, I am asking you to:

[Clearly state the outcome you want.]

I have attached copies of the following supporting documents:

[List the documents.]

Please confirm that you have received my complaint and provide your response in writing.

Kind regards,

[Full name]
[Contact details]

Step 5: Keep a Record of Your Complaint

Save a copy of everything you send and receive.

Your records could include:

The date you lodged the complaint.
Your complaint reference number.
Emails and letters.
The names of people you spoke with.
Notes from telephone calls.
Any actions or response dates you were given.
Copies of documents you supplied.

After an important telephone conversation, you may also want to send a brief email recording your understanding of what was discussed.

Good records can be particularly useful if the matter later goes to AFCA.

How Long Does a Lender Have to Respond?

ASIC’s IDR standards establish maximum response periods for financial complaints.

For most standard complaints, the maximum IDR timeframe is generally 30 calendar days after the complaint is received.

Certain credit-related complaints have shorter timeframes. Complaints involving a default notice, hardship notice or request to postpone enforcement proceedings are generally subject to a 21-calendar-day timeframe, although additional rules can apply when further information is needed to assess a hardship notice.

These are maximum regulatory timeframes rather than targets. A straightforward complaint may be resolved sooner.

There can also be circumstances in which a firm cannot provide its final response within the ordinary maximum timeframe, such as particular complexity or circumstances outside its control. Relevant IDR requirements may then require a delay notification and information about AFCA.

If you have not heard from the lender, ask for:

Confirmation that your complaint has been recorded.
Your complaint reference number.
The expected response date.
Contact details for the complaints team.

Do not assume that making a complaint automatically pauses your repayment obligations or any enforcement process.

If you are experiencing payment difficulty or have received formal enforcement or court documents, continue communicating with the lender and consider seeking independent financial counselling or legal advice promptly.

What Should the Lender’s Response Include?

Read the response carefully.

Check whether it:

Addresses the issues you raised.
Explains what was investigated.
Gives reasons for the decision.
Explains any proposed resolution.
Tells you what happens next.
Provides information about AFCA when required.

ASIC explains that financial firms should tell you their final decision and about your right to take an unresolved complaint to AFCA.

You do not have to treat an unclear response as the end of the matter. Ask questions if you do not understand the decision or believe part of your complaint has not been addressed.

Step 6: Contact AFCA if Your Complaint Is Unresolved

You may be able to take your complaint to AFCA if the lender has not resolved it through IDR or you are dissatisfied with its response.

AFCA is an independent external dispute resolution scheme that assists individuals and small businesses with eligible financial complaints. Its service is free to consumers.

ASIC also directs consumers with unresolved disputes with financial firms to AFCA.

When you approach AFCA, it can help to have:

The lender’s name.
Your loan or account details.
A concise summary of the complaint.
Your original complaint to the lender.
The lender’s final response, if you received one.
A timeline.
Supporting documents.
Details of the outcome you are seeking.

AFCA’s telephone number is 1800 931 678.

Time limits apply to AFCA complaints, and the applicable limit can depend on the type and circumstances of the dispute. Check AFCA’s current requirements rather than delaying unnecessarily.

Is Complaining to ASIC the Same as Complaining to AFCA?

No. ASIC and AFCA perform different roles.

AFCA helps resolve individual eligible disputes between consumers, small businesses and participating financial firms.

ASIC is Australia’s regulator for financial services and consumer credit. ASIC states that it does not resolve individual complaints or act on behalf of individual consumers. Reports made to ASIC can instead contribute to its work identifying serious misconduct and broader systemic problems.

For many individual lending disputes, the usual pathway is:

Raise the issue with the lender through IDR.
Consider AFCA if the issue remains unresolved.
Report suspected broader misconduct to ASIC separately when appropriate.

What if Your Complaint Involves Financial Hardship?

Tell your lender as soon as possible if you are having difficulty making repayments.

A request for financial hardship assistance and a complaint can be related, but they are not necessarily the same thing.

For example, you might ask for a repayment arrangement and separately complain about how an earlier hardship request was handled.

When discussing hardship, explain:

What has changed in your circumstances.
Whether the difficulty appears temporary or ongoing.
What repayments you believe you can currently manage.
What assistance you are requesting.
Whether debt recovery or enforcement action has begun.

Under the National Credit Code, specific processes and response requirements can apply after a credit provider receives a hardship notice.

ASIC explains that a 21-day response framework applies in various circumstances, including when the provider has enough information to make a decision and when it requests additional information.

The assistance that may be available will depend on your circumstances and the lender’s assessment. A particular hardship arrangement is not guaranteed.

If you are dissatisfied with the way a hardship request has been handled, you can use the lender’s complaint process and may be able to approach AFCA.

You can also contact the National Debt Helpline on 1800 007 007 for free, confidential and independent financial counselling.

Seek legal advice promptly if you have received court documents, a repossession notice or another formal enforcement document.

How to Make a Complaint to Us

If your complaint relates to Sunshine Loans, you can use our internal dispute resolution process.

Our current Credit Guide lists our complaint contact details as:

Email: complaints@sunshineloans.com.au
Post: The IDR Manager, PO Box 823, Surfers Paradise QLD 4217

Our Contact Us page also lists a dedicated hardship and complaints phone number:

Phone: 07 5646 5969

When you contact us, please give us enough information to understand and investigate your concern. This could include:

Your contact details.
Relevant loan information.
What happened.
Important dates.
The outcome you are seeking.
Relevant supporting documents.

We will consider your complaint through our IDR process.

If we cannot resolve an eligible complaint to your satisfaction, you may be able to take the matter to AFCA.

Sunshine Loans Pty Ltd holds Australian Credit Licence number 390556.

Making a complaint does not change your right to be treated respectfully. We encourage you to contact us when an issue arises so that we have the opportunity to understand and investigate it.

Frequently Asked Questions

Does It Cost Money to Complain to AFCA?

AFCA provides a free complaint resolution service for consumers and eligible small businesses.

Be cautious about paying a third party to handle a complaint that you may be able to make yourself. Free financial counselling and, depending on your circumstances, community legal assistance may also be available.

Do I Need a Lawyer to Complain About a Lender?

You generally do not need a lawyer simply to raise a complaint with a lender or lodge a complaint with AFCA.

AFCA expressly states that there is no need to obtain legal or other advice before lodging unless you choose to do so.

Legal advice may be important when the matter involves court proceedings, repossession, significant financial loss, complex legal questions or an urgent legal deadline.

Can Someone Help Me Make a Complaint?

You may be able to have a financial counsellor, lawyer or another representative assist you.

The lender or AFCA may need your authority before discussing private account information with another person.

What Happens if My Lender Does Not Respond?

Follow up and ask for confirmation that your complaint has been recorded.

If the applicable IDR timeframe has expired without resolution, you may be able to lodge the complaint with AFCA. ASIC confirms that unresolved complaints can be taken to AFCA, subject to AFCA’s rules.

Can a Lender Reject the Outcome I Ask For?

Yes. Making a complaint does not guarantee that the lender will agree to the resolution you request.

When a formal IDR response is required, the lender should explain its decision and provide relevant information about escalating an unresolved complaint to AFCA.

Take the Next Step

A clear complaint supported by relevant records gives your lender a better opportunity to understand what happened and investigate your concerns.

Start by writing down the key facts, gathering relevant documents and contacting the lender’s complaints team.

If your concern relates to us, you can review our Credit Guide or Contact Us page for our current complaint details.

If the issue remains unresolved, check whether AFCA can provide free and independent assistance.

The information provided in this blog is for general informational purposes only and does not constitute financial or legal advice. It is not tailored to the specific circumstances of any individual. Before acting on the information, you should consider whether it is appropriate for you, having regard to your objectives, financial situation and needs.