Debt collectors must act within the law when recovering debts. This means they must obey laws that are designed to protect you from harassment. Under these laws, a debt
collector must not:
use physical force or coercion (forcing or compelling you to do something)
harass or hassle you to an unreasonable extent
mislead or deceive you (or try to do so)
take unfair advantage of any vulnerability, disability or other similar circumstance affecting you (this is known as .unconscionable conduct.).
The information below will help people who are currently dealing with debt problems or being contacted by debt collectors. It outlines your rights under the Commonwealth consumer protection laws, as
well as general advice for those who are having difficulties with their level of debt.
Unacceptable practices by debt collectors
The types of conduct set out below are likely to breach consumer protection laws, and may breach other laws as well. This is not a complete list. If you experience any of these behaviours (or other
similar misconduct), you should take action.
Extreme conduct - force, trespass, intimidation
If you are confronted by extreme conduct, report it to the police immediately.
Debt collectors must not:
use or threaten force of any kind towards you, any member of your family or any other person connected with you
damage or threaten to damage your property
block access to your property, or block your way
enter your property when you have refused permission, or fail to leave when you ask them to.
Unreasonable contact, harassment, overbearing manner
Debt collectors must not:
shout at you or abuse you, use obscene or racist language or make personal or demeaning comments (you might also want to report this conduct to the police)
contact you more frequently than necessary or at unreasonable times,for example, it is unacceptable to keep phoning you without a break or to contact you late at night or at other unreasonable times
as a way of demoralizing or exhausting you.
make other persistent contact or unreasonable disturbances.
Embarrass or intimidate you through other people
Debt collectors must not:
threaten or harass your spouse, partner, family member or another person connected with you
make any unauthorized contact with a child under the age of 18 years
talk about your situation to other people (including family members, neighbors or co-workers) unless you have agreed to the contact,such actions may also breach the privacy laws: see 'Finding out
about your privacy rights' (below) for more details
engage in conduct that draws people's attention to your situation (e.g. send open letters to a shared post-box, leave messages that others may listen to, make their identity or purpose known to
people you work with again, such actions may also breach privacy laws).
False or misleading statements and/or conduct
Debt collectors must not:
make false statements about the amount you owe, or the status of your debt,for example:
say you owe a debt when you do not
say the amount you owe is greater than it is
say that you have no choice but to pay a debt if you have a valid defence against payment, unless there has been a court judgment: see the section on 'Disputing a debt'
say that your spouse or partner must pay your debt when they have no legal liability to do so: see 'Are you responsible for someone else's debt?' (above)
say that there has been a court judgment if this is not true
make false statements about what will happen if the debt is not paid, or what the debt collector intends to do,for example:
say that unpaid debts are a criminal offence involving the police or possibly jail (being in debt is not a crime!)
say that your children can be taken away from you (this is completely false)
say that you will be made bankrupt immediately, even though there has been no court judgment or bankruptcy proceedings started
say that your goods (e.g. your car) will be seized and sold immediately, even though there is no mortgage over the goods and no court judgment (if there is a mortgage over the goods, generally you
must be given notice and 30 days to pay first)
say that your wages will be garnished (taken), even though a court order to allow this has not been obtained
say that your credit rating will be damaged, if that is not true (privacy laws limit the type of information that a credit reporting agency can hold on file, how long it can be on file, and who can
access the information
use other misleading appearances or actions, for example:
send letters demanding payment that are designed to look like court documents
pretend to be (or pretend to act for) a solicitor, court or government body.
Other unfair or unconscionable conduct
Debt collectors must not:
take unfair advantage of you if you are specially disadvantaged because of illness, disability, age, illiteracy or other circumstance
take unfair advantage of you if you are ignorant of the law, the debt recovery process, or the consequences of not paying a debt.
Complaining about harassment or misconduct by debt collectors
The Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) look after the Commonwealth laws that protect people from undue harassment
and other illegal debt collection conduct.
You should report harassment that is serious and/or ongoing to the ACCC or ASIC, or to the consumer affairs or fair trading agency in your state or territory. Conduct involving assault or threats of
violence should be reported to the police.
You may also want to read Statute Of Limitations In Australia