Disputing a debt from a closed account
Being chased on an account you thought was closed is common — ask for the history and dispute what's wrong.
This guide helps you
- Understand why closed accounts can still be chased
- Know how to request the account's full history
- Learn how to dispute an incorrect closing balance
- Check for errors or old, already-settled amounts
- Find free help to resolve it
7 min
What's happening
Sometimes you're chased over an account you believed was closed — a credit card you cancelled, a utility you disconnected, or a loan you thought was finalised. A small final balance, a missed last fee, or a record sold to a debt buyer can all cause this. You can ask for the full history and dispute anything that's wrong. This is general information, not legal advice.
Your first steps
- Find your records of closing or finalising the account.
- Ask for the closing statement and how any final balance arose.
- Check for a genuine small balance you may have missed.
- Don't assume — confirm before paying or dismissing it.
Step by step
- Request the account history up to and including closure.
- Compare it with your records of closing the account.
- Dispute any error in writing — for example a balance after a paid-in-full closure.
- If a small genuine amount exists, deal with that part fairly.
- Escalate to a free external dispute resolution scheme if it isn't resolved.
What evidence helps
Useful evidence includes a closing or final statement, any confirmation that the account was closed or paid in full, and your bank records for the last payments. If a debt buyer is chasing you, ask for proof the debt was assigned. Look up "assignment of debt" and "final balance" at directory.merion.com.au/glossary.
Where to get free help
If the figures don't match or you're chased after a clean closure, get free advice — call the National Debt Helpline on 1800 007 007 or contact a community legal centre. Unresolved disputes can go to a free external dispute resolution scheme such as AFCA. The Merion help centre can help you find the right contact.
Key takeaways
- Closed accounts can still be chased — confirm before acting
- Ask for the closing statement and full account history
- Dispute any balance that shouldn't exist after closure
- Free help is available if the figures don't match
Frequently asked questions
Why am I being chased on a closed account?
It can be a missed final fee, an error, or a record sold to a debt buyer. Ask for the closing statement and dispute anything that's wrong.
I closed it years ago — does that matter?
Possibly. Age can affect enforceability, but limits vary by state, so get free legal advice before relying on the account's age.
Who can help me sort it out?
A financial counsellor on 1800 007 007 or a free community legal centre can help you get the history and escalate if needed.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
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