Debt Collection
Are you behind in payments to a finance company or bank? If so, the finance company or bank may hand your debt over to a debt collector. Remember you are legally bound to repay any money borrowed.
When your debt is passed onto a debt collector they then begin to take, steps to arrange a repayments plan for the debt. Please discuss the debt with the collector when they contact you. The debt collector may contact you by visiting you in person, call you at work or contact your family and friends to find out where you are.
Do not forget that even at this stage you still have rights. Outstanding debts can be pursued with firmness, determination without resorting to bullying tactics.
Debt collectors are not allowed to do any of the following:
| 1. Intimidate you |
| 2. Tell others about your debt |
| 3. Threaten you with legal action they are not legally permitted to take |
| 4. Mislead you about who they represent, the amount of money owed, and what will happen if you do not pay the debt |
| 5. Threaten you with force, violence or physical force to property |
| 6. Use abusive, offensive or discriminatory language |
| 7. Make unreasonably frequent telephone calls or telephone calls late at night or early in the morning |
| 8. Contact your workplace in such a manner that your employment is threatened |
| 9. Use deceptive tactics, including misrepresentations about the consequences of non-payment, or about the debt recovery process |
| 10. Disclose loan information to third parties, such as work colleagues, neighbours and family members |
| 11. Threaten to disclose information to employers, child welfare agencies, social security agencies and immigration agencies |
Debt collectors will usually try to contact you by phone or in person. It is important that you write down the name of the person you spoke to as well as the date and time. If the debt collector asks for any form of documentation from you such as bank details or drivers license, ask them for this request in writing.
If you have already paid the debt, advise the collector of this in writing. If you have proof you have paid the debt provide those details as well.
What happens if you have an outstanding debt that is a more than a few years old? See: Collection of Old Debts
Don't panic! You cannot be put into jail in Queensland because you cannot pay a debt (no matter what debt collectors may say). You have rights. Get advice quickly.
Let's first take a look at the types of debts that you might have. Go to the: "What are your Debts?" page for a list of common debts we often find ourselves paying off.
If someone says that you owe them money, the law says they can:
| Write you a letter or ring you to demand payment |
| Take you to court to recover their money |
| Take and sell any property over which they have taken a mortgage or other form of security |
| Only visit your home at a 'reasonable time' such as between 7.30am and 9pm |
Under the law they cannot:
| Have you sent to jail |
| Take and sell any property over which they do not have a mortgage or other form of security unless they have an order from the Court |
| Threaten you, physically intimidate you or harass you |
It's an awful feeling when you are struggling with debt, but try not to panic - there is help available. Take action as soon as possible once you realise you can't pay all your bills.
Here are a list of Do's and Don'ts when dealing with your debts:
Do's |
Don'ts |
| Contact the people you owe money and tell them you have a problem |
Ignore or (EVEN WORSE!) throw away letters or demands for payment |
| Work out a payment plan with your creditor |
Make promises about repayments that you can't keep |
| Use the budget planner to help you take control of your finances |
Jump out of the frying pan into the fire |
Get free help and advice from the experts
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Borrowing more money to get yourself out of debt may be tempting but it can get you into deeper trouble. Get some expert advice |
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