I've already paid this debt
Being chased for a debt you've already cleared is frustrating — proof of payment usually resolves it quickly.
This guide helps you
- Know what to do when chased for a debt you've already paid
- Learn how to find and present proof of payment
- Put a clear dispute in writing with your evidence
- Understand how to stop further collection while it's checked
- Find free help if the creditor won't accept your proof
6 min
What's happening
Sometimes a debt that has already been paid still gets chased — for example because a payment wasn't recorded, an account was sold to a debt buyer with old information, or two systems didn't talk to each other. The good news is that proof of payment usually settles it. This is general information, not legal advice.
Your first steps
- Don't pay again until you've checked your records.
- Find your proof of payment — a bank statement, receipt, transfer confirmation or settlement letter.
- Note the date, amount and method of the payment.
- Ask the collector to confirm exactly which account and period they say is unpaid.
Step by step
- Locate your evidence that the debt was paid in full.
- Write to the creditor or collector stating the debt is already paid, with the date and amount.
- Attach your proof (a copy, not your original) and ask them to close the account.
- Ask for written confirmation that the matter is resolved.
- Escalate to a free external dispute resolution scheme if they keep chasing you.
What evidence helps
The strongest evidence is a bank or card statement showing the payment leaving your account, a receipt or reference number, or a settlement or paid-in-full letter from the original creditor. If you paid by an instalment plan, a record of the final payment helps. Keep your originals and send copies only.
Where to get free help
If a collector won't accept clear proof, a financial counsellor can help you push back — call the National Debt Helpline on 1800 007 007 (free). You can also take an unresolved dispute to a free external dispute resolution scheme such as AFCA. See directory.merion.com.au/bodies for the right scheme.
Key takeaways
- Don't pay twice — check your records first
- Proof of payment usually resolves the dispute on its own
- Put it in writing and ask for confirmation the account is closed
- Free help is available if your proof is ignored
Frequently asked questions
What counts as proof I paid?
A bank or card statement showing the payment, a receipt or reference number, or a paid-in-full letter from the creditor are all strong evidence. Send copies and keep your originals.
What if I can't find my receipt?
Your bank can usually provide a statement showing the payment. A financial counsellor on 1800 007 007 can help you work out what records to request.
They sold the debt before I paid — who do I tell?
Tell the collector now chasing you, with your proof. If they won't fix it, escalate to a free external dispute resolution scheme such as AFCA.
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.
Know your options, know your rights
A free, plain-English guide to dealing with debt in Australia — and the people who can help.