Instructions to user:
If you have any questions about how or when to use this letter or if you need advice before completing it, please call our Credit & Debt Legal Advice line on 1800 844 949 for legal advice in NSW. Or call 1800 007 007 for financial counselling advice.
Warning: If you have received a statement of claim or other court papers you should get urgent advice. This letter may not be appropriate or your best course of action if legal proceeding have started. If this is a consumer loan you may be able to lodge in the Australian Financial Complaints Authority. Visit our Debt Problem Solver or read our Financial Complaints to AFCA fact sheet.
Step 1: Consider your offer
This letter is intended to settle a dispute where you agree you owe at least some money or have had legal advice that suggests you will have to pay at least some of the money claimed.
- If you are not sure about whether you owe the debt, get legal advice.
- It is important that the offer you are making to settle covers the entire dispute. The terms of an offer vary depending on the circumstances. It is strongly recommended that you seek legal advice on the terms of the offer.
Step 2: Find correct address for other party
You will need to look at correspondence from the debt collector (or lender or their solicitors) to find out where to send this letter.
- If the debt was originally a consumer credit debt (such as a credit card or personal loan) you should send this request to the complaints department contact of the debt collector (or lender).
- You can get these details from the Australian Financial Complaints Authority (AFCA) ‘find a financial firm’ web page
- Your debt collector (or your lender if they are chasing their own debt) will usually be required to be a member of this scheme by law if they are collecting a consumer credit debt.
- If you cannot find the lender or the debt collector in the above search, call AFCA on 1800 931 678 and ask for the internal dispute resolution contact details of the relevant organisation.
Step 3: Complete the questions below
- Answer the questions below to customise your letter.
- Click the Preview Letter button below. You will be prompted if there is missing information.
- To make changes to your answers, use the Click here to change your selections feature, on the preview letter page.
Step 4: Copy & Paste the letter into your email or Word program, and send it!
- Copy & paste the letter into your email or a Word document.
- You can make other changes but be careful about changing the auto-generated content – get advice first.
- Email or post the letter to your lender.
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Last updated: October 2018.
