AFCA Complaints: How the Process Works
ADS Team
Author
August 16, 2026
25 days ago
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In short: The Australian Financial Complaints Authority resolves disputes between consumers and financial firms free of charge, and its determinations bind the firm if you accept them. You must complain to the lender first and give them time to respond - but once a complaint is properly lodged, a lender generally cannot commence enforcement action while it is open.
Key takeaways
- Free for consumers and small businesses; determinations bind the firm.
- You must go through the lender's internal process first.
- Enforcement action is generally paused while a complaint is open.
- Outcomes can include compensation, fee refunds and varied loan terms.
The steps
- Complain to the lender in writing, keeping a record.
- Wait for their response within the required timeframe.
- Lodge with AFCA online if unresolved or the deadline passes.
- Referral - AFCA gives the firm a chance to resolve it directly.
- Negotiation and conciliation, which settles most complaints.
- Determination if it does not settle. Binding on the firm if you accept it; you remain free to go to court if you do not.
What AFCA can and cannot do
Can award compensation for loss, order fees refunded, require a loan to be varied, and require a default listing to be removed where it was wrongly made.
Cannot change a lender's commercial policy, force a lender to approve a loan, or deal with matters outside its monetary limits or time limits.
Complaints that tend to succeed
- Hardship requests not properly considered.
- Default listings made without the required notices.
- Fees charged contrary to the contract.
- Responsible lending failures where the loan was clearly unsuitable.
- Errors in break cost or payout calculations.
Documentation decides most of these. Keep every letter, note every call with a date and a name.
Frequently asked questions
How long does AFCA take?
Simple matters resolve in weeks at the referral stage. Complex complaints going to determination can take several months.
Can the lender still repossess while I complain?
Generally a firm should not commence or continue enforcement while a properly lodged complaint is open. Tell the lender you have lodged with AFCA and quote the reference.
Do I need a lawyer?
No. The process is designed to be used without one, and free financial counsellors can help you prepare - call 1800 007 007.
Related reading
- The Banking Code of Practice: Your Practical Rights
- Financial Hardship: Your Rights Before You Miss a Payment
- APRA, ASIC, RBA and the ACCC: Who Regulates What
Sources
- Making a complaint — Australian Financial Complaints Authority
- Complaints about financial products — ASIC Moneysmart
Information current as at 2 September 2026.
General advice warning: This article contains general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice. Consider whether it is appropriate for you and seek advice from a licensed credit representative before acting.
Any interest rate shown is an example only and is not an offer of credit. Where a rate is quoted, the applicable comparison rate is available from the relevant lender and should be considered alongside it.
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