If you fall behind on your loan, credit card or utility bills and don't contact your provider or respond to them, a debt collector may contact you.
A debt collector could be the original credit or service provider collecting the debt themselves or a debt collection agency acting on the creditor's behalf. Sometimes debts are sold and the buyer of the debts is the one doing the collecting.
A debt collector can contact you to:
- Provide information about your account
- Make a demand for payment
- Offer to settle your account or make alternative payment arrangements
- Review existing arrangements after an agreed period
- Explain the consequences of you not paying, including any legal action the collector or creditor can take
- Explain any restrictions to your utilities e.g disconnecting your electricity /gas or restricting your water supply
- Inspect or recover mortgaged goods (if they have a right to do so)
- Find out why you have not responded to attempts to contact you (if this is the case)
- Find out why you have not kept to an agreed repayment plan (if this is the case)
Debt collectors can contact you in a variety of ways, for example, by phone, letter, email, social media or by visiting you in person.
Debt collectors must respect your right to privacy at all times. By law, a debt collector cannot reveal that they are a debt collector or provide information about your financial situation to another person without your permission.
There are restrictions on the times you are allowed to be contacted. Unless you request or agree otherwise.
By Phone - No more than 3 times per week or 10 times per month. Weekdays - 7.30am to 9pm and Weekends - 9am to 9pm
Face to face visits - No more than once a month and should only visit your home if there is no other way to contact you. Visiting you at work should be a last option. Weekdays and weekends - 9am to 9pm.
There is no need for a debt collector to visit you in person if repayment arrangements can be worked out over the phone, or by email or letter. However a debt collector may visit you if you have not responded to other attempts to contact you.
No contact should be made on National public holidays.
If a debt collector uses email, social media or similar technology to contact you about a debt you owe, they must be reasonably sure that the account is not shared with another person and that their message cannot be viewed by anyone except you.
Here are the things debt collectors are not allowed to do, that are against the law.
- Force, trespass or intimidate
- Use or threaten physical force of any kind towards you,any member of your family/people connected with you
- Damage or threaten to damage your property
- Block access to your property or block your way
- Remain on your property when asked to leave, unless they have a Court Order
- Behaviour like this should be reported to the police immediately.
- Harassment, verbal abuse or overbearing behaviour
- Shout at or verbally abuse you (including making personal or demeaning comments)
- Use obscene or racist language
- Contact you more than necessary or at unreasonable times
- False or misleading statements or deceptive conduct
- Make false statements about the money you owe or what will happen if the debt is not paid (e.g. repossess your car)
- Send letters demanding payment that are designed to look like court documents
- Pretend to be or to act for a solicitor, court or government body
- Unfair and unconscionable conduct
A debt collector should not take advantage of you:
- If you are disadvantaged because of illness, disability, age, illiteracy or other circumstances
- If you are not familiar with the law, the debt recovery process, or the consequences of not paying the debt
You can complain about harassment or misconduct by debt collector to the ACCC- Australian Competition and Consumer Commission or ASIC - Australian Securities and Investment Commission.