AFCA Complaint Process for Credit Disputes in Australia (2026)

Quick Answer: AFCA (Australian Financial Complaints Authority) is a free, independent dispute resolution service that can order ASIC-licensed lenders to remove incorrectly listed defaults and credit entries. Its decisions are binding on financial service providers. The process: (1) attempt resolution with the lender directly first, (2) if rejected within 30 days, lodge online at afca.org.au at no cost, (3) AFCA investigates and typically resolves within 30–90 days, (4) if AFCA upholds your complaint, the lender must comply. AFCA is a powerful escalation tool — but it works best when you have clear, documented grounds under the Privacy Act 1988. Australian Credit Solutions has expertise preparing AFCA-ready dispute documentation. 98% success rate. No Win No Fee. ASIC ACL 532003. Industry Excellence Award 2022, 2023 & 2024. 4.9/5 from 976+ reviews. Over 5,000 Australians helped since 2014.

Most Australians don't know they have access to a free, legally empowered complaints authority that can force lenders to fix their credit files. AFCA is one of the most underused consumer protection tools available — here's how to use it effectively.

What Is AFCA?

The Australian Financial Complaints Authority (AFCA) is an independent, not-for-profit ombudsman service approved by the Federal Government. It handles complaints against financial service providers — banks, lenders, insurers, credit providers, financial advisers, and superannuation funds.

AFCA was established on 1 November 2018, replacing the former Financial Ombudsman Service (FOS), Credit and Investments Ombudsman (CIO), and Superannuation Complaints Tribunal.

Key features:

• Free for consumers — you pay nothing to lodge or pursue a complaint
• Binding decisions — if AFCA rules in your favour, the financial service provider must comply
• No legal representation required — you can represent yourself
• Accessible — online portal at afca.org.au, phone 1800 931 678

For credit file disputes, AFCA can order: removal of incorrectly listed defaults, correction of inaccurate credit information, compensation in some cases, and formal findings against lenders who breached the Privacy Act 1988.

When to Use AFCA for a Credit File Dispute

AFCA is an escalation tool — not the first step. Before lodging with AFCA, you must have already attempted to resolve the matter directly with the lender or bureau.

Use AFCA when:

• You lodged a formal dispute with the credit provider
• The credit provider rejected your dispute or didn't respond within 30 days
• You believe the rejection was wrong — you have valid Privacy Act grounds
• The credit provider acknowledged an error but hasn't acted on it

Do not use AFCA when:

• You haven't yet attempted to resolve it with the lender (AFCA will require this first)
• The entry is accurate and correctly listed — AFCA cannot remove accurate information
• You're looking for a shortcut around the initial dispute process

Step-by-Step: Lodging an AFCA Credit File Complaint

Step 1: Document Your Internal Dispute With the Lender

Before AFCA can accept your complaint, you need evidence you've already tried. Gather: For more, see our guide on how to dispute a credit report error in australia.

• Your original dispute letter/email to the credit provider (dated, specific)
• Their response — or evidence that 30 days has passed without a response
• Any supporting evidence (addresses, payment records, correspondence)

If the lender didn't respond within 30 days of your dispute, AFCA considers this a failure to resolve internally and will accept your complaint. For more, see our guide on privacy act credit rights in australia.

Step 2: Lodge Online at afca.org.au

Go to afca.org.au → "Make a Complaint." The online form asks for: If you need professional help, explore your legal rights under Australian credit law.

• Your contact details
• The financial service provider you're complaining about
• Type of complaint (select "credit reporting" or "credit file")
• Description of the issue
• What outcome you're seeking
• Upload supporting documents

Be specific: "On [date], [Lender] listed a default of $[amount] on my Equifax credit file. I contacted [Lender] on [date] disputing this on grounds that the Section 21D notice was sent to [old address] while my current address at [lender name] records was [new address] since [date]. I have attached [evidence]. [Lender] rejected my dispute on [date] citing [reason]. I believe this decision is incorrect under Section 21D of the Privacy Act 1988."

Step 3: AFCA Acknowledges and Assigns a Case Manager

AFCA will acknowledge your complaint within 2–5 business days and assign a case number and case manager. The lender is formally notified of the complaint.

Step 4: Negotiation Phase (Most Complaints Resolve Here)

AFCA contacts the lender and facilitates negotiation. Many lenders resolve complaints at this stage rather than progress to formal AFCA determination — particularly if the Privacy Act grounds are clear. This phase typically takes 30–60 days.

If the lender resolves the complaint satisfactorily (e.g., agrees to remove the default), the complaint is closed. Get the resolution confirmed in writing from both AFCA and the lender.

Step 5: If Unresolved — AFCA Formal Decision

If negotiation doesn't resolve the matter, AFCA proceeds to a formal review and issues a Determination. Both parties have the opportunity to make submissions. AFCA's Determination is final and binding on the financial service provider. Your rights to further appeal exist via the courts (rare in practice for credit file matters of this nature).

What AFCA Can and Cannot Order

Case Study: Naomi, Gold Coast — AFCA Forced Default Removal After Lender Refused

Naomi, 45, a hospitality manager from Broadbeach, had a $2,100 ANZ credit card default on her Illion file. She'd been on a approved repayment plan with ANZ when the default was listed — a clear breach of the Banking Code prohibition on listing defaults during active arrangements.

Naomi wrote to ANZ's complaints team with detailed documentation. ANZ's response: the repayment plan had "lapsed" before the default was listed (their internal records showed a 3-day gap between the plan's nominal end date and the default listing). ANZ declined to remove the entry.

Australian Credit Solutions reviewed the case and prepared AFCA documentation citing the Banking Code of Practice provisions and the narrow 3-day gap ANZ claimed as justification. We lodged with AFCA on Naomi's behalf. In the AFCA negotiation phase, ANZ reversed their position and agreed to remove the default — 41 days after AFCA lodgement. Naomi's score improved from 521 to 649.

Naomi paid nothing until we succeeded.

Get a free assessment from Australian Credit Solutions →

AFCA vs Going It Alone: What Professional Help Adds

Self-representation at AFCA is absolutely possible and AFCA's process is designed to be accessible to consumers without legal expertise. However, professional involvement adds value in specific ways:

Stronger initial documentation: Disputes prepared with specific legal citations (Privacy Act 1988 sections, CR Code provisions, Banking Code clauses) are more likely to resolve in negotiation rather than requiring full AFCA determination.

Correct framing: Presenting the complaint in the legal framework AFCA works within — rather than as a general grievance — produces faster and more decisive outcomes.

Avoiding procedural errors: Small errors in how a complaint is framed or what evidence is submitted can affect outcomes. Experienced practitioners know what AFCA looks for.

Australian Credit Solutions prepares AFCA-ready dispute packages as part of our representation service, at no cost until the outcome is achieved.

Frequently Asked Questions

What is AFCA and can it help with credit file disputes in Australia? AFCA (Australian Financial Complaints Authority) is a free, government-approved independent dispute resolution service for financial complaints. It can investigate credit file disputes against ASIC-licensed lenders and credit providers, and issue binding decisions ordering lenders to remove incorrectly listed defaults, correct inaccurate information, and remedy Privacy Act 1988 breaches. For consumers, AFCA is free to use and requires no legal representation.

How long does an AFCA credit complaint take to resolve in Australia? Most AFCA credit file complaints resolve within 30–90 days. If resolved during AFCA's negotiation phase (where many lenders settle to avoid a formal determination), resolution typically takes 30–60 days. Formal AFCA Determinations (when negotiation fails) take longer — often 3–6 months. Response timelines vary by case complexity and lender responsiveness.

Does AFCA have the power to remove credit defaults in Australia? Yes — AFCA can issue binding decisions ordering credit providers to remove incorrectly listed defaults from credit files. The lender must comply with an AFCA determination. AFCA's power only extends to entries that breach the Privacy Act 1988, the Credit Reporting Privacy Code, or the Banking Code of Practice — accurate, correctly processed entries cannot be ordered removed.

Do I need a lawyer to lodge an AFCA complaint? No — AFCA's process is designed to be accessible to consumers without legal representation. The online lodgement system at afca.org.au is straightforward. However, having professional assistance (such as Australian Credit Solutions) to prepare the complaint documentation with precise legal references can improve outcomes and reduce the time to resolution.

Can I lodge an AFCA complaint without first contacting the lender? No — AFCA requires you to have first attempted to resolve the matter directly with the financial service provider. You must give the lender the opportunity to respond to your complaint (typically 30 days). If the lender doesn't respond within 30 days or rejects your complaint, AFCA will then accept your lodgement. Skipping the internal dispute step will result in AFCA returning your complaint for internal resolution first.

What if the lender ignores an AFCA decision? AFCA decisions are binding on ASIC-licensed financial service providers. If a lender fails to comply with an AFCA Determination, AFCA reports non-compliance to ASIC, which has regulatory enforcement powers. In practice, lenders almost always comply with AFCA decisions — the regulatory consequences of non-compliance are severe.

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Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003. Credit repair services are subject to individual assessment. Results may vary. This article provides general information only and does not constitute legal or financial advice.

Related reading: How to dispute a credit report error → | Your Privacy Act credit rights → | Default removal services →