Before you use this letter, read our fact sheet on Responsible Lending.

Please delete all highlighted instructions before sending this letter.

You need to add information into the letter about your situation.  

Remember - get advice on the outcome you are after first, as that part can be tricky to work out and depends a lot on your situation. 

You must get legal advice first if you played any role in the bank not having accurate information about your financial situation. See our factsheet for more details

Responsible Lending Sample letter

Date:

Address:

Without prejudice

Dear [name of company]

My details: [your full name]
Loan details: [loan reference number]

I want to raise a complaint that you did not comply with your responsible lending obligations when you provided me with the loan. 

This is because you did not: [delete anything that does not apply] 

1.	make reasonable enquiries about my requirements and objectives, 
2.	make reasonable enquiries about my financial position, 
3.	take reasonable steps to verify my financial position,

before completing your unsuitability assessment. 

[details about why you think the credit provider did not make reasonable enquiries/ take reasonable steps]. 

The loan was actually unsuitable, because:
 [list your reasons why it was unsuitable; for example: 
•	I could not afford the loan
•	I wanted a loan where I could make extra repayments, and withdraw money for renovations later
•	I was not going to be able to repay the whole credit card limit in under 3 years, my credit card (or credit card limit increase) happened after 1 January 2019

For small amount loans, you could add the following, if it applies:
•	I already had 2 other small amount loans in the last 3 months – this third loan is presumed unaffordable
•	I’ve already been in default on another small amount loan in the last 3 months
•	I am mostly on Centrelink and this loan meant I would be paying more than 20% of my income towards small amount loans to all my lenders]

At the time I entered into the loan, I actually had an income surplus/ deficit of $[amount]. I have outlined this in the below table: 

Category 	Monthly amount 	
Income 		
Less accommodation expenses		
Less living expenses		
Less liabilities 		
Less the new loan repayments		
Equals income surplus/ deficit 		
 
This meant that I could not afford the loan.

In resolution to my complaint, I am seeking [outcome sought – get legal advice for help filling this out]:

1.
2.
3………

If you are not prepared to agree to this resolution, please provide me with written reasons, along with any supporting documentation. 

Please confirm in writing that you will put my account on hold while you are investigating my complaint.