How to complain about a lender, step by step

Complaining about a lender feels harder than it should. You are often dealing with them at a bad time already, the contract is long, and the person on the phone may not be the person who made the decision. Many owners put it off until the problem becomes a crisis.

The good news is that there is a clear order of play, and following it puts you in the strongest position. This guide takes you from the first email to the outside bodies that exist if the lender does not fix things.

What counts as something worth complaining about?

Complaints about business lenders tend to fall into a handful of groups:

• Fees you did not expect, such as a charge not mentioned in the letter of offer.
• Wrong or unclear information given when you applied.
• Default and enforcement action that you believe was wrongly triggered or poorly handled.
• Changes to the terms without proper notice or agreement.
• Broker conduct, including undisclosed commissions or a loan submitted without your consent.
• Security and discharge problems, such as a mortgage or caveat not released after repayment.
• Service failures, including repeated delays or not responding.

If the problem is that you simply disagree with a decline, a complaint rarely changes the result. Our guide on what to do after a business loan is declined is a better starting point for that.

Step 1: What should I do before I write anything?

Take thirty minutes to gather the facts. A complaint with dates and figures is taken more seriously than one built on a feeling.

1. Find the contract and any letter of offer, plus emails and messages.
2. Build a timeline. When did you apply, what were you told, when did funds arrive, when did the problem start?
3. Put a dollar figure on it. Extra fees charged, interest you believe was wrong, losses from a delay.
4. Decide what you want. A refund, a correction, a fee waiver, a release of security, an apology, a change to the repayment schedule.
5. Check the lender’s status. Search the company and ABN on ASIC’s registers and look at the lender’s website for its complaints policy and AFCA membership.

That fifth step decides your path later, so do not skip it.

Step 2: How do I make the first complaint?

Ask for the lender’s complaints team. Most have an email address or form. If you cannot find one, write to the contact on your contract and say it is a formal complaint.

A good first complaint is short. It states:

• who you are, the account or loan reference and the date;
• what happened, in three or four sentences, in date order;
• what it cost you in dollars;
• what outcome you want;
• the date by which you want a reply, such as 14 days.

Keep the tone factual. Attach copies, not originals. Keep your own copy, and note who you spoke to if there are calls.

Here is an illustration. A joinery business is charged a $2,400 early exit fee. The letter of offer, on the owner’s reading, said exit fees applied only in the first six months, and the loan was repaid in month nine. The complaint states the dates, quotes the clause, shows the $2,400 deducted from the payout and asks for a refund within 14 days. That is a complaint someone can act on.

If you also deal through a broker, send the broker a copy. Our guide on how brokers get paid explains why the broker’s commission trail can matter in a dispute about early repayment.

Step 3: What if the lender says no, or doesn’t answer?

If the lender refuses, or you have no reply after the date you set, you can escalate. The path depends on whether the lender is an AFCA member.

If the lender is a member of AFCA

ASIC’s guidance says AFCA can resolve complaints from small businesses about commercial lending. AFCA’s rules define a small business as a primary producer or a business with fewer than 100 employees. AFCA can only hear complaints about its members and only within its limits on claims and compensation. It can award monetary compensation and make some non-monetary orders.

You will normally be asked to show you complained to the lender first. Our companion guide on AFCA and small business disputes goes into the process.

If the lender is not a member

ASIC states that lenders that only provide commercial credit are not legally required to join AFCA. In that case, ASIC recommends independent legal advice early, and you may have private civil remedies. Other routes include:

• ASBFEO’s dispute support tool, which refers small businesses to a suitable low-cost resolution service. ASBFEO assists small businesses and family enterprises in a dispute with another business or a government agency.
• Your state or territory small business commissioner, many of which offer mediation. See small business commissioners in each state.
• Farm debt mediation, if you are a farming business. AFCA may consider a primary producer’s unresolved complaint after this mediation.
• Your state law society, which can help you find a lawyer.

Worried the lender may take action while you complain? Tell us what is happening and a person can look at whether refinancing or restructuring is a realistic parallel track. Enquiring does not touch your credit file.

Who else can I report to?

ASIC says you can report suspected misconduct by a broker, lender or receiver. It also says its role in private commercial disputes is limited, and it generally acts only where there is a broader public interest. Report if you believe the conduct is wrong more widely. Do not expect ASIC to resolve your dispute for you.

ASIC adds that commercial borrowers have protections under the ASIC Act against unconscionable conduct, misleading conduct and unfair terms in standard form small business contracts, but that proving unconscionable conduct in commercial lending is difficult. It typically needs evidence that the lender took improper advantage of a power imbalance.

Is a term in my contract unfair?

You may have a complaint that is about the contract itself. ASIC’s information sheet says the unfair contract terms law covers standard form small business contracts, and gives examples: a $5,000 default fee on a single missed $20,000 payment by a business with a strong payment history, and a lender that could change any term on five days’ notice. Terms like these may be unfair.

The law applies where the business has fewer than 100 employees or turnover under $10m and, for financial products, the upfront price does not exceed $5m. An unfair term is treated as void. Providers can be fined for proposing, applying or relying on one. A court decides whether a term is unfair, which is why legal advice is sensible if a large amount is at stake.

What if I am behind on repayments?

Keep paying what you can and talk to the lender in writing. Complaining does not pause the contract. Missed repayments can lead to default notices, extra charges and enforcement, which can overshadow the original issue.

Banks that follow the 2025 Banking Code are reported to give small business borrowers 30 days to fix a default before demanding full repayment or enforcing, with exceptions. Check the Code for the current wording.

Our guides on asking a lender for hardship help and free financial counselling for small business cover the parallel steps.

Common mistakes to avoid

• Complaining only by phone and having nothing to point to later.
• Mixing grievances. One clear issue with a dollar figure beats a long list.
• Threatening before documenting. Facts first, consequences second.
• Letting time pass. Limits apply to AFCA and to legal action.
• Signing a release without reading it. A settlement offer often asks you to give up further claims.
• Moving money to avoid a debt. That creates a bigger problem than the one you started with.

When a complaint is really a sign you need a different lender

Sometimes the complaint is resolved and the relationship is still not right. Maybe the loan no longer fits, the fees are high or the lender has lost your trust. Refinancing can be the cleanest fix, and it is worth knowing early what is available.

We can look at that with you. Our enquiry form takes around a minute and does not involve a credit check at this stage. Your details are not sent to a pile of lenders. A real person reads your situation and calls you. Describe the current loan, what has gone wrong and what you need next, as accurately as you can, so we point you to something that fits.

See what a fresh start could look like →