The COVID-19 pandemic has had a significant financial impact on individuals and small businesses.
If you find yourself in a dispute with your bank or financial firm about COVID-19 related credit, finance, loans or payment issues, AFCA can help to resolve it.
More information: how AFCA helps with credit and loan complaints
Break fees when changing a loan
Lenders may now be offering loans at interest rates lower than the rate you are paying. However, when you approach your lender about changing your loan, they may tell you that a fee will be payable. Your lender may refer to this as a ‘break fee’, an ‘early exit fee’ or ‘economic cost’.
Credit card chargebacks
The COVID-19 pandemic has caused widespread cancellations of holidays and other events. If your plans were cancelled due to COVID-19 and you paid by credit card, you may be able to get a refund by asking your bank or credit union to raise a chargeback.
Useful links
- AFCA Fact sheet – Breaking a fixed rate loan
- National Debt Helpline: 1800 007 007
- Find a financial counsellor near you
- Australian Banking Association – financial hardship contacts.
If your financial firm is not an ABA member, you could also check with Customer Owned Banking Association (COBA), and for broker contact information, visit MFAA’s Mortgage + Financial Help website.
