Holiday hangover: Get on top of credit card complaints

As we return to work and school after the long summer break, the influx of bills from all that festive splurging can bring reality back with a thud. Little wonder it's also a time when credit card complaints surge.

According to Canstar, Australians splurged almost $87 billion on credit cards over the holiday period, handing over $9.4 million a day to the banks in credit card interest charges.

Credit card debt has risen every January since 2015 as Australians struggle to pay bills within the interest-free period. The number of people using Buy Now Pay Later (BPNL), such as Afterpay and Zip, to spread payments over time is also on the rise.

As we spend more, the more likely we are to have issues, with credit card complaints and BNPL disputes showing consumers caught out by everything from unexpected fees and confusing repayments to duplicate charges and missed payments.

The rise in credit card and BNPL debt

There are several reasons why we run into strife. Cost-of-living pressures have already stretched most households, with 36 percent of credit card holders leaving part of their balance unpaid each month, and one in seven also using BNPL.

The latter can create a false sense of affordability. Depending how much you spend, the first payment may not come out until a fortnight after you ‘buy’ the item, and the remaining amount is spread over weekly or fortnightly repayments.

 

 

This can make BNPL instalments seem manageable at the time, but research shows that almost 70 percent of BNPL users with credit cards use them to meet BNPL repayments. Interest, late fees and compounding debt creep up.

We also fall for the lure of sales. According to CommBank IQ, Australians spent almost $24 billion over last year's Black Friday and Cyber Monday long weekend, up 4.6 percent on the previous year, as they splashed out on deals.

When you’re using credit cards and BNPL to snap up those ‘bargains’ and either not paying off the full amount on your credit card or using your card to cover the BNPL instalments, however, those ‘savings’ don’t add up.

Then when the bills come in, they are often dense and confusing, so much so that we often don’t notice credit card overcharges or added fees.

Common credit card and BNPL issues

Credit cards remain one of the most complained-about financial products in Australia, according to the Australian Financial Complaints Authority (AFCA).

Complaints about BNPL services have also risen sharply since providers were brought under AFCA’s jurisdiction. In 2024-2025, AFCA received just over 2000 complaints about low-cost credit contracts, including BNPL products, with credit reporting, unauthorised transactions and incorrect fees among the top issues. AFCA noted that most of these occurred before new regulation governing the sector came into effect on 10 June 2025.

It always pays to check your statements closely as errors, such as duplicate or incorrect charges, are easily made. For example, if you shop online and the transaction fails, then you try again, you could be inadvertently charged twice. Then there are the unauthorised transactions that can be hard to spot if you have been spending heavily.

 

 

Consumers using BNPL complain that repayments were higher than advertised, or that late fees have been applied to their account despite sufficient funds being available at the time repayments were due. Sometimes their account has been sent to collections agencies prematurely, or missed or disputed payments have been incorrectly listed as defaults on their credit reports.

They have also complained to AFCA about credit checks made without their consent, unsuitable credit limit increases and unfair responses to hardship requests.

Why it’s important to resolve these matters

A billing mistake can seem too small to worry about, particularly if you find it frustrating to deal with the credit card provider.

But these mistakes aren’t just annoying. Sometimes they can follow you for years, particularly if you are on the receiving end of an incorrect default or missed payment. This is added to your credit report and can ultimately affect your ability to apply for a loan, secure a rental property or refinance your mortgage.

Many Australians do not even realise there is an issue until they are knocked back for credit and find out these black marks are on the record.

With AFCA citing credit reporting errors and poor complaint handling as key drivers of disputes, it is important to challenge any credit card or BNPL issue as soon as possible. The longer it remains unchallenged, the harder it can be to unwind.

 

 

Take control of your finances

Regularly reviewing your credit card and BNPL debt can help prevent small problems becoming much bigger ones.

Make sure you set reminders for BNPL repayments, particularly if they do not align with your pay cycle. While you may not be paying interest on the instalments, if you miss a payment – even a small one – it can become very costly very quickly.

Don’t be tempted to use high-interest credit cards to pay BNPL instalments. That previously manageable debt will become a high-interest, long-term debt.

It is also important that you understand your rights. Credit card holders have long been protected under Australian Consumer Law (ACL) and industry banking codes. BNPL providers are now also covered by national credit laws, meaning they must act responsibly, investigate disputes fairly and correct errors – including credit reporting mistakes.

Contact them as soon as you notice an issue and outline your credit dispute clearly and concisely.

If providers aren’t meeting their obligations, you can take the issue to AFCA. In 2024-2025, AFCA handled more than 100,000 financial complaints – with 10 percent of those about credit providers – and helped secure more than $390 million in compensation and refunds for Australians.