Financial Hardship Letter - Template, Sample Form

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Attention: Hardship / Customer Assistance Team
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Date: ________

Account / Loan reference number: ________

Re: Application for Variation of Credit Contract on the Grounds of Financial Hardship

To whom it may concern,

I, ________, am the borrower / debtor under the credit contract identified by the account reference number set out above (the Credit Contract). I am writing to notify you that I am presently unable, or expect to be unable, to meet my repayment obligations under the Credit Contract by reason of financial hardship, and to formally request a variation of the terms of that contract.

I make this request as a notice of hardship pursuant to section 72 of the National Credit Code (being Schedule 1 to the National Consumer Credit Protection Act 2009 (Cth)) and in accordance with your obligations under that Act and the Australian Securities and Investments Commission Act 2001 (Cth).

1. Nature of my financial hardship

I have experienced, and am continuing to experience, the following circumstances which have given rise to my financial hardship:

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I expect that these circumstances will continue for the following estimated period:

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2. Variation requested

As a result of the matters set out above, and pursuant to section 72(1) of the National Credit Code, I request that the terms of the Credit Contract be varied in the following manner:

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For your reference, I set out the following details of my current financial position and the proposed varied repayment amount:

Current contractual repayment: ________
Proposed repayment: ________
Proposed repayment frequency: ________
Proposed commencement date of variation: ________

3. Basis for the request

I expect that the variation requested above would enable me to meet my obligations and to repay all money owing under the Credit Contract as soon as reasonably possible, for the following reason(s):

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4. Default interest, fees and enforcement action

I request that, while this hardship request is being considered, you:

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5. Your obligations

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I further understand that, where you do not agree to vary the Credit Contract, you are required to provide me with written reasons for that decision together with information about my right to lodge a complaint with the Australian Financial Complaints Authority (AFCA), of which you are a member.

6. Response requested

Please confirm receipt of this letter in writing and advise me whether you agree to the requests set out above by ________.

Any correspondence in relation to this matter may be sent to me at the address or email shown above.

Yours faithfully,

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Signature: ________
Dated: ________