Dealing with Debt Collectors

What is a debt collector?

A debt collector is someone hired to collect debts on behalf of a business or entity. A creditor could take on the role of a debt collector; personally collecting the money they are owed. Or if the original creditor sells the debt to someone else, the “assignee” of the debt could take on the form of a debt collector.

It is also common for creditors to hire 3rd party debt collectors to collect payments on their behalf.

What are your rights when dealing with debt collectors?

According to Consumer Law, a debt collector is not allowed to:

– Exhibit signs of coercion or physical violence (forcing or convincing you to do something you don’t want to do).
– Demonstrate signs of harassment or hassle you an unreasonable amount.
– Deceive or mislead you (or attempt to).
– Take advantage of any disability or weakness affecting you, as it could be considered unconscionable conduct.

These laws not only apply to debt collectors’ actions and attitudes toward you, but to your family members or others connected with you.
It is important that you make a formal complaint if a debt collector is abusive, deceives you, or threatens you in any way.

 
Being contacted by a debt collector

Debt collectors should contact you only when necessary and only for a reasonable purpose, such as:

– Demanding a payment on behalf of a creditor
– Arranging repayment options
– To determine the reason an agreed upon repayment has not been made
– Recovering and inspecting goods that have been mortgaged

If contact is necessary, it should be within reasonable hours, dates, and frequency.

– No more than three letters or phone calls per week
– Contact by phone between the hours of 7:30AM-9: 00PM on weekdays and 9:00AM-9: 00PM on weekends
– No contact is allowed on national holidays
– In person contact is only allowed between 9:00AM-9: 00PM on both weekdays and weekends.

Protecting your privacy
Debt collectors are required to protect your personal information. If you believe a debt collector has violated your privacy rights, contact the office of the Privacy Commissioner.

Filing a complaint against a debt collector

Unfortunately, not everyone can act in a professional manner. If you feel violated or wronged by a debt collector, you have the option to file a complaint.

Step 1: Contact the creditor – contact the creditor as soon as possible, describe the problem and what you want. In many cases, this is all you need to do to resolve the problem. It is also a good idea to write a letter describing your complaint to file with the creditor, so they have a clear description of the problem, and you have a record of the contact.

Step 2: Contact the ACCC if you are still having problems.

Step 3: Take legal action – You may be entitled to take your complaint to court if your problem has not been corrected. Be sure to get legal advice before committing to this step.

Image by Danilo Rizzuti