The amount they're claiming is wrong
If the figure being chased looks too high, you can ask for a breakdown and dispute the parts that don't add up.
This guide helps you
- Recognise when a debt amount may be overstated
- Know how to request an itemised breakdown of the balance
- Learn to challenge fees, interest or charges you didn't expect
- Put a clear, evidence-based dispute in writing
- Find free help if the figure can't be explained
7 min
What's happening
Sometimes you accept that you owe something, but the amount being claimed looks wrong. It might include fees you didn't expect, interest that seems too high, charges for things you never agreed to, or payments you've already made that haven't been credited.
You're entitled to a clear explanation of how the balance was worked out. This is general information, not legal advice.
Your first steps
- Don't pay the disputed amount in full just to make it stop — pay only what you accept, if anything, and flag the rest.
- Ask for an itemised breakdown showing the original balance, every fee and interest charge, and all payments received.
- Gather your own statements so you can compare them line by line.
- Note any payments you've made that don't appear on their figures.
Step by step
- Request the full calculation in writing — opening balance, charges, interest, and credits.
- Compare it to your own records and mark each item you disagree with.
- Dispute the specific items in writing, explaining why each is wrong and attaching your evidence.
- Ask them to correct the balance and confirm the new figure in writing.
- Escalate to a free external dispute resolution scheme if they can't justify the amount.
What evidence helps
Useful evidence includes your account statements, receipts or bank records for payments, the original contract showing the agreed fees and interest rate, and any letters about charges. If interest or fees seem unfair, note the term in the contract you're relying on. You can look up unfamiliar terms like "default interest" at directory.merion.com.au/glossary.
Where to get free help
A financial counsellor can help you read a complex statement — call the National Debt Helpline on 1800 007 007 (free). For disputes about a credit product, fees or interest, you can usually escalate to AFCA at no cost once you've complained to the business. The Merion help centre can point you to the right starting place.
Key takeaways
- Ask for an itemised breakdown before paying a figure you doubt
- Compare their numbers against your own statements line by line
- Dispute specific items in writing with evidence attached
- Free help is available to check the maths and escalate if needed
Frequently asked questions
What if they can't break down the amount?
If a creditor or collector can't explain how the balance was calculated, that's a strong reason to dispute it and, if unresolved, to take it to a free external dispute resolution scheme such as AFCA.
Can I be charged fees and interest on a debt?
It depends on what your contract allows and the law. If charges look unfair or unexpected, ask for the contract term they rely on and get free advice from the National Debt Helpline on 1800 007 007.
Should I pay the part I agree with?
You can pay only the amount you accept and keep the disputed portion on hold, but get advice first so a partial payment isn't treated as accepting the whole debt.
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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