Financial Hardship after a disaster (Vic)
Last Updated 13 March 2024
Last Updated 13 March 2024
This resource is designed to support community workers and volunteers connect people in disaster affected communities with legal help. It will help you identify when someone you’re helping is facing a financial legal problem and where to refer them for appropriate legal support. We refer to community members you are helping as your ‘client’ throughout this resource.
It provides:
Links to legal information resources that you can provide to your client
Information on how to make a referral for legal help
People affected by natural disasters can experience both short-term and long-term financial difficulties, ranging from lost credit cards and problems accessing cash through to being unable to make loan repayments.
A persons’ bank or credit provider must consider what’s happened to them if they have experienced a disaster. They can speak to their hardship department, or they can talk to a financial counsellor through the National Debt Helpline, on 1800 007 007.
If the lender won’t help, you can refer your client to a free service that can help. See the section “Refer your client for free legal help” for more information.
Financial hardship is when a person is having trouble repaying a loan or debt.
Your client may be having trouble:
making mortgage repayments
making personal loan payments
paying rent
making credit card payments
meeting business obligations
making business loan repayments
paying utility bills
paying for temporary accommodation
Financial hardship after a disaster may be caused by:
loss of job or reduced shifts
being unable to physically access money
injury or illness
facing unexpected expenses
Financial counsellors are skilled professionals. They will listen to your client’s problems and help them with things like:
Financial counselling is a free and confidential service.
To find a financial counsellor near your client visit Financial counselling – Moneysmart.gov.au or call the National Debt Helpline, on 1800 007 007.
Many financial issues have legal solutions.
Some of the ways legal services can help include by:
If someone you are helping is facing financial hardship after a disaster, their first step should be to contact their financial service provider and explain what is happening.
Most financial service providers have dedicated financial hardship teams. When your client calls their service provider, they should ask to speak with this team.
If their financial service provider will not help them, you can refer your client to a financial counsellor and lawyer.
For more information see Urgent help with money – Moneysmart.gov.au
For more information, read our resource: Government assistance after a disaster (Vic) – Justice Connect
Consumer Action Law Centre has designed resources to help people in Victoria understand their financial rights and take steps to sort out debt or disputes about credit, banking and insurance.
These resources are designed for financial counsellors and other professionals who assist clients. Consumer Action Law Centre has also created resources that are designed for consumers that you can provide to your client. It includes fact-sheets, sample letters, and more.
Visit their website for more information: Resources and Toolkits – Consumer Action Law Centre
Disaster Legal Help Victoria has created resources to help people in Victoria understand their financial rights and manage debt after a disaster, including:
Justice Connect has created plain language resources for people in Victoria who are struggling to pay their mortgage or who have received a bankruptcy notice, including:
Disaster Legal Help Victoria (DLHV) is a joint initiative of the Federation of Community Legal Centres, Justice Connect, the Law Institute of Victoria, Victoria Legal Aid, the Victorian Aboriginal Legal Service, and the Victorian Bar. DLHV brings together the skills and resources of the legal profession, including government and private legal entities, to help mitigate and respond to complex and widespread legal needs that arise in disasters.
For legal information and referrals, call Disaster Legal Help Victoria on 1800 113 432 (Monday to Friday, 8am to 6pm). You can also contact your closest community legal centre to get advice from a local lawyer.
Visit Disaster Legal Help Victoria’s website for more information on how they can help.
The Australian Financial Complaints Authority offers dispute resolution for the financial services industry, covering consumer complaints about credit, finance and loans, insurance, banking deposits and payments, investments and financial advice, and superannuation.
Call 1800 931 678 (Monday to Friday, 9am to 5pm) or visit their website: https://www.afca.org.au/.
The Consumer Action Law Centre offers legal advice and financial counselling for vulnerable people in Australia.
Call 1800 446 477 between 10am and 1pm on Tuesdays, Wednesdays and Thursdays.
You can also get online legal help by using the ‘Chat with us’ button on the CALC website.
Visit their website for more information: Consumer Action Law Centre – Consumer Action Law Centre.
Mortgage Stress Victoria is an organisation that helps mortgage-holders to resolve their mortgage debt and many surrounding issues putting housing at risk. They can help your client if they:
Call 1800 572 292, Monday to Friday between 9.30 am and 5pm, and press 1. Visit their website for more information: Mortgage Stress Victoria | West Justice
Justice Connect can provide free legal advice and ongoing representation in certain matters to eligible individuals, small business owners and primary producers affected by disasters like floods, bushfires, cyclones and other extreme weather events. We may be able to match your client with free legal assistance to help with disputes or to assist them better understand their legal rights and obligations.
Refer someone to Justice Connect: https://justiceconnect.org.au/refer/
This resource was last updated on 13 March 2024. This is legal information only and does not constitute legal advice. You should always contact a lawyer for advice specific to your situation. You can read our disclaimer in full here: Disclaimer and copyright for our Disaster Legal Support Resource Hub – Justice Connect.