What is AFCA, and when should I use it?

The Australian Financial Complaints Authority is the free, independent, ombudsman-style scheme for resolving complaints about financial firms — including debt collectors. If your complaint to a financial firm hasn't been resolved within 30 days (or 21 for hardship), AFCA is your next step.

What AFCA can do

AFCA can:

  • Investigate your complaint independently.
  • Mediate between you and the firm.
  • Make a binding determination — the firm has to comply. You don't.
  • Order compensation for direct loss and, in some cases, non-financial loss.
  • Direct the firm to vary or remove the debt in certain circumstances.

What AFCA can't do

  • Make decisions outside its jurisdiction (general consumer law cases not involving a financial firm).
  • Award unlimited compensation — there are caps that vary by complaint type.
  • Punish the firm criminally.

When to use it

Use AFCA when:

  • You've made an internal complaint and waited 30 days (21 for hardship) without resolution.
  • A debt collector has crossed a line — abuse, harassment, contact frequency.
  • A hardship application has been ignored or unreasonably refused.
  • You're being chased for a debt you don't believe you owe.
  • A payment plan you agreed to has been unilaterally varied to your detriment.

How to use it well

  1. Document everything — dates, amounts, communications.
  2. Lodge online at afca.org.au — takes 15 minutes.
  3. Be specific about what outcome you want — debt waiver, compensation, plan reinstatement, conduct change.
  4. Respond promptly to AFCA's questions during their review.

Most matters resolve at the mediation stage without needing a formal determination.