Hi there. Australia has strict laws regulating personal finance and the provision of credit. These laws can be found in the National Credit Code. The rules that apply to your specific situation will depend on the value of your finance. But there are general rules that apply to all credit providers. These include the provider disclosing certain information to the borrower before providing finance (called pre-contract disclosure), taking steps to determine if the borrower can afford the loan, and giving the borrower regular statements during the term of the loan or finance arrangement.

For most credit contracts, a provider can only charge a maximum of 48% interest per annum, inclusive of fees and charges. If the credit is for between $2001 and $5000, an establishment fee of $400 can be charged on top of this interest rate. If your credit provider is charging you more than 48% interest, they are breaching the National Credit Code.

You should ask the provider for a written statement of the remaining balance on your loan. If you believe there is an error, you should talk to the provider directly to resolve the issue. If they cannot help you, ask about their internal complaints or dispute resolution policy. If you are dissatisfied with their internal handling of the matter, you can lodge a formal complaint with the Credit & Investments Ombudsman – an external and independent dispute resolution service for credit matters (www.cio.org.au). The Ombudsman may investigate your matter and propose a solution. If you are unhappy with the outcome, you may still be able to pursue your matter in court with the help of a lawyer.

Suggested way forward

Start by speaking to the credit provider directly and, if appropriate, lodging a complaint with the Credit & Investments Ombudsman. You may also want to speak to a lawyer who can advise you of your legal rights and options. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.