In FOS’s recent systemic issues update it reported that it wrote to a financial services provider in respect of its credit collection procedures after becoming aware that it had not issued legal proceedings in the jurisdiction where the applicant resided. Such action is in breach of Regulation 36 of the National Consumer Credit Protection Regulations 2010.

The FSP advised that its external lawyers had corrected their procedures and that internal policies have been amended and staff and relevant third parties provided with training to ensure there is no further occurrence of this error.

Under the regulation if it is not known where the debtor, mortgagor or guarantor ordinarily resides, the court proceeding must be brought in a court of the State or Territory where the debtor, mortgagor or guarantor ordinarily resided at the time the credit contract, consumer lease, mortgage or guarantee was made.