Omari Gates
Dealing with debt collectors can be a scary and overwhelming experience, especially with the many myths surrounding debt collection. In Australia, debt collectors are third-party businesses that collect unpaid debts for creditors. They are allowed to contact you about your debt and can even sue you, but they are not allowed to harass, bully, or threaten you. Debt collectors are trained to use various tactics to locate people, and they can get your phone number through a process called skip tracing, where they locate people who know you and get as much information as they can. If you are struggling to pay, it is important to contact the debt collector immediately and discuss a new arrangement. You can also call a helpline for free, confidential advice about what to do.
| Characteristics | Values |
|---|---|
| How debt collectors get your contact information | Debt collectors use a process called "skip tracing" to get phone numbers and other contact information. They locate people who know you and get as much information as they can about you. |
| How often they can contact you | Debt collectors can call or write to you three times a week with a maximum of ten times a month. They can only visit your home between 9:00 a.m. and 9:00 p.m. on weekdays and weekends. Contact is prohibited on national or public holidays. |
| What they can do if you don't pay | Debt collectors can take legal action within 6 years from the date of your last payment, or from when you acknowledged the debt in writing. They can sue you for payment, and if you don't show up in court, they can get an arrest warrant. |
| What they can't do | Debt collectors cannot harass, bully, or threaten you. They cannot call before 8 a.m. or after 9 p.m. They cannot come to your workplace to collect payment or reveal that they are debt collectors to your co-workers. They cannot exploit your vulnerability or that of your family members. |
| What to do if you can't pay | You can contact the debt collector and explain your situation to work out a payment plan. You can also call the National Debt Helpline for free, confidential advice. |
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What You'll Learn
Debt collectors' legal powers in Australia
Debt collection is legal in Australia. The Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) are responsible for administering Commonwealth consumer protection legislation in relation to the debt collection industry. The ACCC and ASIC have jointly produced guidelines to assist creditors, collectors, and debtors in understanding their rights and obligations.
Debt collectors in Australia have the right to contact individuals about their debts. They are also allowed to contact other people to find out where an individual lives, where they work, or to get their phone number. However, debt collectors are not permitted to harass, bully, or threaten individuals. They must respect the right to privacy of debtors and third parties, and they should only contact a debtor for a reasonable purpose and only when necessary. Debt collectors can take legal action within 6 years from the date of the last payment or acknowledgement of the debt, though there are some situations where they have up to 15 years to collect.
If individuals cannot afford to pay, they can contact the debt collector to work out a payment plan, and the collector must consider this request. Debt collectors may ask for financial details to understand how much the debtor can afford to pay. They can also waive the debt if the debtor is on a low income, has no major assets, and their situation is unlikely to change. If individuals are being harassed or intimidated by a debt collector, they can ask the collector to stop in writing, and if the behaviour continues, they can contact the Australian Financial Complaints Authority (AFCA) to make a complaint.
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How debt collectors get your contact details
Debt collectors are third-party businesses that collect unpaid debts for creditors. When a lender contacts you about an overdue debt and you haven't responded or made any repayment, they may refer the account to a debt collection agency. This usually happens when an account is overdue or "in default", which can occur if you haven't made a payment for at least 60 days and owe $150 or more.
In Australia, debt collectors have the right to contact you about your debt, but they are not allowed to harass, bully, or threaten you. They are also advised to respect any reasonable requests for contact within specific hours, based on your circumstances. Debt collectors are legally allowed to contact other people to find out where you live, where you work, or to get your phone number. They use a process called "skip tracing" to get phone numbers and other contact information for people who owe debts. They locate people who know you and try to get as much information as they can about you. For example, a debt collector may call your employer to verify your employment and whether your contact information is correct.
If you feel that a debt collector is exploiting your vulnerability, you can speak to a friend or family member, and then contact the Australian Competition and Consumer Commission (ACCC). If you think a debt collector is contacting you too often or not giving you an opportunity to respond, you can contact the company to complain or make a consumer complaint with the ACCC.
If you can't afford to pay, you can contact the debt collector and explain your situation. They may ask for financial details to determine how much you can afford to pay, and you can work out a payment plan with them. If you think a debt is not yours, you can ask for a copy of your account information and contract, and check these details against your own records. You can also contact the National Debt Helpline on 1800 007 007 for free, confidential advice.
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What to do if you can't pay
If you are struggling to pay, contact the debt collector immediately. Explain your situation and try to discuss a new arrangement. You can ask them to delay legal action to give you time to get free legal advice. If you cannot afford to pay anything, call the National Debt Helpline on 1800 007 007 for free, confidential advice. Financial counsellors offer free, independent, and confidential help to people with money problems and may also negotiate with creditors on your behalf.
If you think the debt isn't yours, or you disagree about the amount owing, you can ask for a copy of your account information and contract. Check these details against your records and then contact the provider to dispute the debt. If necessary, provide copies of any additional details, such as payments you've made that aren't recorded on your account.
If a debt collector contacts you about a debt you've already paid, explain that in writing and include copies of records that prove it. If you are disputing the debt because you have grounds not to pay (for example, a breach of your rights), contact the debt collector and tell them why.
Debt collectors are not allowed to harass, bully, or threaten you. They must respect your right to privacy and protect your personal information. If a debt collector is contacting you too often or not giving you an opportunity to respond, you can contact the company to complain or make a consumer complaint with the Australian Competition and Consumer Commission (ACCC).
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What debt collectors can and can't do
Debt collectors are third-party businesses that collect unpaid debts for the creditors who originated the debt. They are trained to use various tactics to find people, including those who are not hiding. Debt collectors use a process called "skip tracing" to get phone numbers and other contact information for people who owe debts. They can legally contact other people to find out where you live, work, or to get your phone number.
What debt collectors can do:
- Debt collectors can contact you via phone or letters.
- They can ask for financial details to understand how much you can afford to pay.
- They can ask you to agree to a payment plan if you can afford it.
- They can repossess and sell your goods if you ignore a notice about being taken to court.
- They can contact other people to find out where you live, work, or to get your phone number.
- They can take legal action against you.
- They can visit your home or another agreed-upon location, but only as a last resort.
What debt collectors can't do:
- They can't harass, bully, or intimidate you.
- They can't use physical force or coercion.
- They must respect your right to privacy.
- They can't take unfair advantage of you because of illness, disability, age, illiteracy, or lack of understanding of the law.
- They must protect the personal information of debtors and third parties.
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How to stop debt collector calls
Debt collectors in Australia have the right to contact you about your debt. However, they are not allowed to harass, bully or threaten you. Here are some steps you can take to stop debt collector calls:
Understand your rights
According to the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC), debt collectors must respect your reasonable requests for contact within specific hours, based on your circumstances. They are also not allowed to disclose your financial situation to anyone else without your permission. Debt collectors can contact you:
- Monday to Friday, 7:30 am to 9 pm
- Weekends, 9 am to 9 pm
- No more than 3 times a week or up to 10 times a month
Ask them to stop
You have the right to tell a debt collector to stop contacting you. If you ask them to stop all communication, they must comply, regardless of the channel. You can send them a certified letter requesting communication only via mail. They are legally required to respect this request.
Dispute the debt
If you believe the debt is not yours or the amount is incorrect, ask for a copy of your account information and contract. Check these details and contact the provider to dispute the debt if necessary. Provide copies of any additional details, such as payments you've made that aren't recorded. If the debt is older than 6 years (3 years in the Northern Territory), there is no court judgment against you, and you have not acknowledged the debt in writing, you may have grounds not to pay.
Seek financial counselling
Financial counsellors offer free, independent, and confidential help to people with money problems. They can also negotiate with creditors on your behalf. You can contact the National Debt Helpline on 1800 007 007 or seek free legal advice.
Negotiate a new arrangement
If you are struggling to make payments, contact the debt collector immediately and explain your situation. You can discuss a new payment plan or negotiate to pay a smaller amount as a "full and final settlement". Ensure you get any new agreement in writing.
Remember, debt collectors use a process called ""skip tracing"" to obtain your contact information, so changing your phone number or email address may not stop the calls. Taking proactive steps to address the debt and understanding your rights will help you manage the situation effectively.
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Frequently asked questions
Debt collectors are third-party businesses that collect unpaid debts for creditors. If you fall behind on your loan, credit card, or bills, a debt collector might contact you. They use a process called "skip tracing" to get phone numbers and other contact information for people who owe debts.
You can call the National Debt Helpline on 1800 007 007 for free, confidential advice about what to do. You can also contact the debt collector, explain your situation, and work out a payment plan.
Debt collectors can sue you for payment as a last resort. They cannot harass, bully, or threaten you. They are also not allowed to call you before 8 am or after 9 pm, and they can only visit your home between 9 am and 9 pm on weekdays and weekends.
You can ask for a copy of your account information and contract and dispute the debt if necessary. You can also request that a debt collector stop calling or writing to pursue payment, but you will still be obligated to pay the debt.
Repeated calls, threats of violence, or physical threats are all signs of debt collector harassment. If you feel that a debt collector is exploiting your vulnerability, you can speak to a friend or family member and contact the Australian Competition and Consumer Commission (ACCC).
