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Disputing a debt

Some of the reasons you may want to dispute a debt are:

  • if the debt is not yours – for example, if you think someone has fraudulently used your identity
  • if you have already paid the debt or settled it in some way
  • if you disagree with or are unsure about the amount being claimed
  • if you have a valid defence (a legal reason) to not pay the debt (see below).

Defences

If you think there is a legal reason why you should not have to pay the debt you may be able to dispute it. Get legal advice.

Valid defences may include:

  • that you were misled by a creditor or trader about goods in a contract
  • that the circumstances of the contract being made were unfair, for example, if you signed a contract because you felt undue pressure to do so
  • that the credit agreement does not comply with the appropriate legislation, such as providing all of the required information. There are laws to protect people against unfair contract terms generally, as well as specific legislation about door-to-door and telephone sales and credit contracts.

Get advice

If you want to dispute a debt get legal advice as soon as possible as some defences have to be stated within certain time limits.

The Consumer Action Law Centre (CALC) can give you advice about whether you have grounds to dispute a debt, call their Legal Advice Line on (03) 9629 6300 or 1300 881 020 (country callers).

The CALC website (link below) has factsheets about defences for particular kinds of credit contracts and situations where you may be entitled to vary your payments because of hardship. You can also email CALC your legal advice question via the website.

More information

Deciding whether you owe the debt

Related publications

Debt problems: the law, your options

Related websites

Consumer Action Law Centre – factsheets

How we can help

Call Victoria Legal Aid’s (VLA) Legal Information Service for free information over the phone about the law and how we can help you with your legal problem. You can speak to a legal information officer in English or ask for an interpreter. Phone (03) 9269 0120 or 1800 677 402 (country callers), Monday to Friday from 8.45 am to 5.15 pm.
VLA’s other free legal services include:

  • advice at VLA offices and other locations across Victoria
  • lawyers who are on ‘duty’ to help at many courts and tribunals.

For some matters we can provide you with a lawyer to help you run your case.

To find out more about any of our legal services see What we do.

Who else can help?

See Getting help with financial problems for details of free financial counselling services in your area and other organisations that can help you.