The ACCC has released an issues paper jointly produced by the ACCC and the Australian Securities and Investments Commission, Debt collection practices in Australia.
This paper summarises major issues identified by the ACCC and ASIC during information-gathering activities undertaken in 2008:
- Harassment and coercion
- Disputes about the debt
- Debt assignment and/or selling
- Incorrect credit default listing
- Difficulties negotiating repayment arrangements
- Representations on consequences of non-payment
- Jurisdiction in which proceedings are instituted
- Enforcement responses
- Compliance programs
- Complaints handling—internal dispute resolution
- Complaints handling—external dispute resolution
- Financial hardship
Feedback on this paper has been invited by 30 June 2009
ASIC is responsible for ensuring activities of creditors/collectors engaged in recovering outstanding debts arising from the provision of financial services are compliant with the ASIC Act. The ACCC is responsible for ensuring compliant collection activity for debts arising from the supply of non-financial products and services under the Trade
Practices Act. State and territory offices of fair trading also regulate the activities of creditors/collectors under fair trading acts and other legislation.
Regulation of debt collection activities may be affected by proposed changes to consumer protection legislation (Australian Consumer Law and the National Consumer Credit Code).
