Debt Collection services: Australian laws and practices!

Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) have developed a guideline for individuals and companies involved in debt collection. This list represents the roles of ASIC and ACCC in the area of debt collection which gives a practical guide for collectors and creditors.

The debt collectors services are obliged by law to follow these instructions under the Australian Commonwealth; this guideline can also be found on www.accc.gov.au along with other points of interest on this important topic;

1. Contact for a reasonable purpose only
2. Making contact with the debtor
3. Hours of contact
4. Frequency of contact (including contact face-to-face with debtors, contact with third parties, and an explanation of undue harassment)
5. Location of contact
6. Face-to-face contact (including at the debtor’s home or workplace)
7. Privacy obligations to the debtor and third parties (including the collection, disclosure and handling of the debtor’s personal information, the privacy rights of third parties and obligations regarding consumer credit reports)
8. When a debtor is represented
9. Record keeping (including recording debt settlements)
10. Providing information and documents
11. Consistent and appropriate correspondence
12. If liability is disputed (including situations where liability is formally disputed)
13. Repayment negotiations
14. Contact when a payment arrangement is in place
15. Contact following bankruptcy or a Bankruptcy Act agreement
16. Conduct towards the debtor (generally)
17. Debtors at a special disadvantage (including non-English speaking debtors)
18. Conduct towards family members and other third parties (including communication with the debtor’s child)
19. Representations about the consequences of non-payment (including credit reporting)
20. Representations about the legal status of a debt (including statute-barred debt)
21. Legal action and procedures
22. Resolving debtor complaints and disputes
23. The role of independent external dispute resolution schemes
24. Contact for a reasonable purpose only (this section appears above)
25. Making contact with the debtor
26. Hours of contact
27. Frequency of contact (including contact face-to-face with debtors, contact with third parties, and an explanation of undue harassment)
28. Location of contact
29. Face-to-face contact (including at the debtor’s home or workplace)
30. Privacy obligations to the debtor and third parties (including the collection, disclosure and handling of the debtor’s personal information, the privacy rights of third parties and obligations regarding consumer credit reports)
31. When a debtor is represented
32. Record keeping (including recording debt settlements)
33. Providing information and documents
34. Consistent and appropriate correspondence
35. If liability is disputed (including situations where liability is formally disputed)
36. Repayment negotiations
37. Contact when a payment arrangement is in place
38. Contact following bankruptcy or a Bankruptcy Act agreement
39. Conduct towards the debtor (generally)
40. Debtors at a special disadvantage (including non-English speaking debtors)
41. Conduct towards family members and other third parties (including communication with the debtor’s child)
42. Representations about the consequences of non-payment (including credit reporting)
43. Representations about the legal status of a debt (including statute-barred debt)
44. Legal action and procedures
45. Resolving debtor complaints and disputes
46. The role of independent external dispute resolution schemes