Debt collection in Australia is a service that encompasses both amicable and legal collections that can be handled by following a set of procedures which will first involve proper reminders and negotiations with the debtor.
Our team of attorneys in Australia specializes in recovering debts and can help you settle any undue payments, both by using non-judicial and judicial methods.
The steps described below are a general description of a debt collection process, with emphasis on amicable recovery for the purpose of maintaining positive business relationships with the debtors.
The following are the main steps in debt collection procedures:
Our lawyers in Australia are here to support you in collecting undue payments, from the first reminder letters to the commencement of the formal litigation proceedings.
Debt collection is done through debt collection agencies or through other entities that have expertise over debt collection procedures, such as our law firm in Australia.
Commonly, persons who carry out debt collection activities are known as debt collectors. Debt collectors have a set of responsibilities and obligations and provided that if a debt collector surpassed his or her responsibilities, the debtor has the right to take a legal action against the respective person.
In Australia, debt collectors can be reported to the local institutions for inappropriate behavior, which can take the form of harassment for example.
Persons who have had a negative experience with a debt collector can address the respective issue to the Australian Competition and Consumer Commission (ACCC), in the case in which the debt collector did any of the following:
There are other actions that enter into the category of illegal behavior and we invite you to address to our lawyers in Sydney if you need legal counselling regarding the possible legal actions one can take when situations like these occur.
There are many rules of law that regulate debt collection, including debt collection proceedings. Below, our lawyers in Australia outlined the most important regulations:
Please mind that additional regulations are prescribed by other rules of law. For instance, the Debt Collectors Licensing Act 1964 stipulates that the debt collector is not allowed to impose any fees or charges outside the ones established with the client who appointed the debt collector.
This is stipulated under the Section (13)(1)b of the above mentioned Act. Breaching of contracts by the debt collectors can result in various penalties.
For instance, in Victoria, a debt collector can be charged with the following, as per the regulations of the Australian Consumer Law and Fair Trading Act 2012:
Please mind that 1 penalty point is calculated at a value of $184,92 (for the financial year of 2022-2023).
As a general rule, it is recommended whenever possible to resort to amicable debt recovery. This is a preferred method because it does not involve the extra costs associated with the legal proceedings in court.
Our team of Australian lawyers can provide counseling according to your particular case. When an amicable collection is not possible, we will help you take legal action against the debtor.
Contact our law firm in Australia for complete details about legal debt collection and the services we provide to companies.