How to lodge a National Credit Law hardship complaint in Australia
Under section 72 of the National Credit Code (Schedule 1 to the NCCP Act 2009 (Cth)), a borrower in hardship may give the credit provider a hardship notice. The provider must respond within 21 days. If refused or unresolved, lodge a complaint with AFCA (afca.org.au). No fee applies.
The framework
National Consumer Credit Protection Act 2009 (Cth); National Credit Code (Schedule 1) — sections 72, 73, 74, 88–94; ASIC Regulatory Guide 271 (internal dispute resolution); AFCA Rules.
The process
Confirm the contract is regulated
The NCCP Act applies to credit provided wholly or predominantly for personal, domestic, household, or residential investment purposes. Business-only credit is generally outside scope.
Assess hardship grounds
Grounds include illness, unemployment, reduced income, relationship breakdown, disaster, or other reasonable cause. Document the change and expected duration.
Give a hardship notice
Under section 72, give the provider a hardship notice (in writing is best) stating the reasons and proposed variation — payment pause, term extension, reduced payments, or capitalisation.
Provide supporting information
The provider may request further information within 21 days under section 72(3). Supply income evidence, Centrelink statements, medical certificates, or redundancy notice as relevant.
Provider response within 21 days
The provider must respond within 21 days of receiving sufficient information — agreeing to vary, refusing, or seeking more information (section 72(4)).
Internal Dispute Resolution (IDR)
If refused or the outcome is inadequate, lodge an IDR complaint. Under ASIC RG 271 the provider must issue a final IDR response within 30 days (45 days for hardship).
Pause enforcement
Under section 89A, while a hardship notice is on foot, enforcement by the provider is generally restricted. Default notices under section 88 may be invalid if hardship is unresolved.
Escalate to AFCA
If IDR fails, lodge an AFCA complaint online at afca.org.au. AFCA will pause enforcement and investigate hardship, responsible lending, and related issues.
AFCA conciliation and determination
AFCA conciliates — repayment plans, waivers, or compensation. If unresolved, a case manager issues a preliminary view followed by a binding Determination under the AFCA Rules.
Court option and statutory applications
Where AFCA is unavailable or rejected, sections 88–94 of the NCC allow court applications (for example, to a state court under section 94 to vary a contract). Engage a financial counsellor or solicitor.
Forms and templates
Common mistakes
- Verbal hardship requests without a written notice under section 72
- Failing to supply the information the provider reasonably requested
- Allowing enforcement to continue without invoking section 89A
- Accepting an inadequate variation without going to IDR or AFCA
- Missing AFCA time limits
Get this process right with Quillio
Quillio can draft a section 72 hardship notice, prepare supporting evidence, and escalate to AFCA with aligned submissions under the National Credit Code. See /practice-areas/commercial-lawyers.
General information only, not legal advice. Hardship matters interact with credit reporting, insurance, and insolvency. Consult a financial counsellor or lawyer.
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