Sample Financial Hardship Letter Template


Sample Letter – Financial Hardship – Credit Law
[Credit provider]
[Credit provider’s internal dispute resolution contact person] (find the details using the “search for members” link at
or )
[Credit provider’s address]
Dear [credit provider’s internal dispute resolution person]
Request for change on the grounds of hardship
[Client name]
[Type of loan] Account no. [number]
I/we am/are in financial hardship following the floods/cyclones in Queensland.
I/we wish to apply to you for a variation of the above loan contract on the grounds of hardship under s. 72 of the
National Credit Code (Schedule 1 of National Consumer Credit Protection Act 2009) (“NCC”).
I/we assume you will stay all enforcement action while you consider this application. If this is not possible, please let
me/us know immediately in writing.
Section 72 of the NCC sets out the general principle that a debtor who is unable, reasonably, because of illness,
unemployment, or other reasonable cause to meet their obligations under a credit contract but reasonably expects to
be able to repay the debt if the contract is changed in the ways described, may apply to the lender for such a change.
1. Financial Hardship due to Reasonable Cause (Flooding/Cyclone)
I/We have been in financial hardship because of the severe flooding/cyclone damage that occurred in {town/region/
city/town} on {dates}. It has meant that: [use where applicable]
My house has been inundated by floodwater to [depth]
My house has been affected by floodwater/cyclone
My property/possessions have been damaged or destroyed following the floods/cyclone
I have been unable to attend work/have been stood down or laid off as a result of the floodwater/cyclone.
[Give details of what has occurred, what it has meant for you in terms of employment, and how long you think it will take
to clean things up and get back to normal]
2. Expectation of being able to reasonably repay the loan if the variation is granted
I/we expect to be able to reasonably repay the loan if the requested variation below is granted. I/we have been paying
loan repayments of $x per fortnight/per month while I/we have been in hardship.
I/we have now returned to work and can now afford the scheduled repayments on the loan. OR
I/we expect to return to work on [give date or number of months] at which point I/we will be able to afford the
scheduled loan repayments. OR
I/we expect to have finished the flood/cyclone clean up in x months and will be able to afford the scheduled loan
repayments two months after that date.


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