Smart money: How to resolve a credit dispute

Australians often find themselves in a credit dispute because they haven’t acted quickly enough to correct an issue, but problems are not always obvious.

A missed payment on a Buy Now Pay Later (BNPL) instalment turns into a late fee. A disputed credit card charge accrues interest. Months later, a default appears on a credit report, often without the consumer even being aware. By the time you make a credit card complaint, your ability to get a car loan or refinance could already be affected.

 

 

With Australians racking up almost $87 billion in credit card debt over the holiday season, it is important we take better control of our finances. Take a closer look at your statements and charges and see if anything is amiss.

While banking and finance complaints to the Australian Financial Complaints Authority fell last year, the authority noted that failing to respond to requests for help remained one of the top five issues. Raise a credit dispute as soon as possible to give yourself the best chance of a fair outcome.

Spotting the errors

It pays to be vigilant. Don't simply dismiss a credit card balance that seems slightly higher than expected. It could be a duplicated transaction, interest applied earlier than advertised, an unauthorised charge, or a fee that wasn’t clearly disclosed.

BNPL errors can be hard to spot. Consumers often assume repayments are correct until they notice instalments increasing, late fees being charged unexpectedly, or repayments being taken despite payment pauses or disputes.

Another frequent issue involves credit report errors. A single missed BNPL repayment, even one that is still in dispute, can be listed as a default. These listings can remain on a credit file for years if not challenged.

Sudden balance jumps without new spending are a major warning sign. So are interest charges appearing during what you understood was an interest-free period.

With BNPL, watch for repayments that don’t match your original agreement, fees that weren’t clearly disclosed, or accounts being escalated to collections without adequate notice.

Checking your credit report regularly is critical. Australians are entitled to a free credit report and reviewing it after the holiday period can catch errors before they cause long-term damage.

Making an effective financial complaint

As soon as you notice an issue, call or contact the provider via their online customer service. If they can’t help, lodge an official complaint.

 

 

Remember, a successful credit dispute isn’t about venting your frustration, though you may well be within your rights to feel hard done by. It’s about clarity and evidence.

Start by gathering key documents related to the issue. This could include statements, screenshots of repayment schedules, payment confirmations, as well as any previous communication with the credit card or BNPL provider.

Clearly identify what is wrong and what outcome you are seeking, whether that’s a refund, fee reversal or correction to your credit report.

While you can discuss the issue over the phone, it is best to submit your complaint in writing and ask for written confirmation that it has been received. Providers generally have between 30 and 45 days to respond, depending on the issue.

 

 

What if the provider does nothing

Responses may be delayed, dismissive or not resolved to your satisfaction. If it is a minor amount, you may choose to let the matter go.

Remember, though, that you have rights as a consumer. It is particularly important to pursue the issue if it involves a significant amount or it is affecting your credit rating or financial situation.

AFCA independently assesses disputes involving credit cards and BNPL providers, including unauthorised charges, incorrect fees and credit reporting errors.

BNPL providers have been regulated under the National Consumer Credit Protection Act since June 2025, meaning their products are now treated like other forms of consumer credit and consumers now have greater access to AFCA’s resolution service.