My lender is taking legal action. What should I do?

If your lender is taking legal action and you are in financial hardship, it is important that you seek legal or financial counselling advice as soon as possible, so that you know what options may be available to you.

If you haven’t already, you may wish to ask your lender for financial hardship assistance.

If you are unhappy with your lender’s response, you may wish to make a complaint with us and in most instances, we can require your lender to discontinue enforcement action while we are reviewing your complaint.

However, only in very exceptional circumstances can we require your lender to stop an eviction.

If a Court has entered judgment against you, we are also limited in what we can do to assist you. This is because once your lender has obtained judgment against you, you are no longer entitled to apply for a financial hardship variation such as a request for a payment arrangement. For more information regarding our position once a Court has entered judgment against you, please read our Position Statement 3.

Please note that interest, fees and charges continue to accrue on your loan while we are considering your complaint.