Resolving a problem
What you can do if the creditor is in the wrong.
What if the creditor does something wrong?
If the creditor has acted illegally or unfairly you can go to their dispute resolution service. These are independent services that can look at your problem and help you get a solution. The types of problems you can sort out are:
- If you didn't get the right information.
- If the creditor is repossessing all your household items, or something of much higher value than the loan.
- If you have lots of fees or insurance that you don't know what they are for.
- If you are the guarantor but you didn't know that meant you would get stuck with the loan.
- Any other problems with your creditor.
Find out how to contact the disputes resolution service.
Statutory damages
If the creditor doesn’t provide you with the information when they have to, the law says they can be penalised. This is called statutory damages and it means you may be able to get money back from them.
Find out how much you can get back.
Go to the creditor
If you understand what the creditor did wrong you can write them a letter. Explain what was wrong and tell the creditor what you want to do about it, for example, do you want to cancel the contract, have your goods returned or a fee cancelled?
If the creditor doesn’t agree, you can take the case to a disputes resolution service, or the Disputes Tribunal.
Find out how to contact the disputes resolution service.
Find out more about the Disputes Tribunal.
A debt collector says I owe money, but I don’t, what can I do?
Write to the debt collector and the creditor to say that you don’t agree and explain the reasons why.
If they do not accept your explanation, and continue to demand payment you can take a claim to the Disputes Tribunal for non-liability for the debt.
Checking your own credit records
The Credit Reporting Privacy Code requires credit reporters (companies that provide credit reports on consumers and businesses) to provide individual consumers with free access to their own credit information on request. If you need the information urgently (within a five working day period), the company can charge you a reasonable fee.
Credit reporters must also have an internal complaints process that consumers can use to complain about mistaken debt information. Complainants can go to the Privacy Commission if they are not satisfied with the outcome.
