How To Deal With Debt Collectors

This information is designed to level the playing field when dealing with debt collectors and  to make it easy to lodge complaints. Dealing with debt collectors can be very stressful. Most people don’t know they can and can’t do and what they can and can’t say. A minority of debt collectors use this to get away with activities that are often illegal or questionable. If no one complains they’ll keep getting away with it!

What is allowed?

Contact by creditors needs to be for a reasonable purpose only (not simply to harass you). These reasons can include:

• asking for a payment/explaining the consequences of not paying;
• finding out why you haven’t responded to their attempts to contact you; or
• finding out why a payment arrangement didn’t work.

What is not allowed?

• abusive, offensive, obscene or discriminatory language;
• physical force;
• face to face visit if you refuse;
• saying that not paying your debts is a criminal offence;
• saying that your spouse or partner/other family member must pay your debt if they have no liability;
• saying that you will be made bankrupt straight away or that your wages will be garnished (taken) when no court proceedings have started;
• threatening to take your possessions if they are not security for the loan or when there is no court judgment;
• threatening or harassing people such as your spouse, partner or family member;
• talking to your children about your debt;
• talking about your situation to other people unless you have agreed to the contact; or
• telling your employer about your situation unless you have agreed to it, or they have a court judgment for a garnishee.

Debt Collectors cannot call you

• outside of 7.30 am–9.00 pm on weekdays and 9.00 am–9.00 pm on weekends;
• on national public holidays;
• more than 3 times per week or 10 times per month.

Important things to do when dealing with Debt Collectors

Records are vital when making a complaint.

• Keep copies of every letter or email you (do not throw anything away);
• Never handover originals; if a document is requested, send a copy;
• Ask for everything to be confirmed in writing.

If you are being contacted by debt collectors, use a small notebook to keep a record of the following information:

• keep a record of every call;
• the time and date;
• the name of the person calling;
• the company they’re calling from;
• reference numbers relating to your case;
• the number they called you on. eg. work phone;
• a summary of what they said, including any unacceptable behaviour.

Debt Mediators and Debt Collectors

Under Subsection 8 of the “Debt Collector Guidelines” you have a right to have an “Authorised Representative” represent you or advocate for you. Debt Collectors should no longer contact you after this person has been appointed. When Debt Mediators is engaged to act as your “Authorised Representative,” we will send written notification of this to your creditors.

Complaints

If you believe a Debt Collector has broken the guidelines, it is important that you lodge a complaint. Most people won’t complain and this enables Debt Collectors to continue with unscrupulous behaviour.

ASIC (finance related debts e.g. credit cards/personal loans)
1300 300 630

ACCC (non finance debts e.g. phone/electricity bills)
1300 302 502