There are laws about the behaviour creditors and debt collectors can engage in when pursuing you for a debt.

Debt collectors must be licensed and they are not allowed to harass or threaten you. If the behaviour is serious and you feel you are being harassed or threatened you can make a report to Consumer and Business Services on 131 882 (who deal with licencing of debt collectors). You can also ring the Police Assistance line on 131 444

What a creditor/debt collector cannot do

See Fair Trading Act 1987 s 43

See ASIC's MoneySmart information Dealing with debt collectors

See also ASIC and ACCC's Debt collection guideline: for collectors and creditors

Do I have to pay for debt collection fees?

Often creditors or debt collectors will try to include their costs in the amount being recovered. A creditor or debt collector can only claim debt collection fees from you where you have agreed to them specifically prior to entering into your contract. For example, where you have agreed that you will be liable for the cost of debt collection in the event of default. This is often the case with credit contracts.

If you are unsure as to whether you agreed to pay debt collection fees, seek legal advice.

Financial Counselling

A financial counsellor can help you with negotiations with creditors, and give you options regarding dealing with your debts. Their services arefree. The National Debt Helpline number is 1800 007 007.

Debt collectors must be licensed and they are not allowed to harass or threaten you. If you feel you are being harassed or threatened you can make a report to Consumer and Business Services on 131 882 (who deal with licencing of debt collectors). As a last resort, assuming that there are threats of physical violence, you can also ring the Police Assistance line on 131 444.