Take a look at this list below to see if the debt collectors approaching you are violating your rights or not. Or, if you need legal assistance to renegotiate your debt, please contact us now to see how JCL Legal can help you.
During these uncertain times, if you're looking for the best lawyer in Sydney CBD, NSW, Jeffrey of JCL Legal is available by mobile phone. Please call him on 0419 233 670.
How Does Debt Collection Work?
A debt collector is a licensed serviceman who is hired by an agency such as a bank, corporation or other credit institution to retrieve debts from outstanding debtors.
Debt collection works whereby the organisation hires the debt collector to collect the debt for them. As in all work, there is some motivation to complete the job, either monetary or in job security, so the debt collector may seem anxious, determined, even adamant that they collect your debt.
Alternatively, the debt collector may have purchased your debt from your original creditor. In this case, collecting your debt is their personal financial responsibility, so they will be eager to retrieve it.
The key thing to understand with debt collectors is that this is their job, and it’s a strenuous job. This kind of understanding can in some cases improve your relationship with your debt collector.
What Can Debt Collectors Do?
Debt collectors are allowed to take the following steps to extract debt from you. The following debt collection methods are not illegal, so you should expect your debt collector to use them on you:
Contact you in person, through phone or in writing.
Ask questions to understand why you havn’t paid your debts.
Ask you why you have failed to respond if they have contacted you without reply.
Describe the actions they legally can take if you refuse to pay your debt.
Request payment for a debt—if it is past its due date.
Plan and modify arrangements with them and the creditor.
Organise a settlement offer with you that may make it easier to pay off the debt.
Sell your debt to another company who will have the same arrangements and powers as the original creditor.
Obtain an order from a court to repossess some of your property and take court action against you.
What Can't Debt Collectors Do?
Make repeated phone calls
Debt collectors are not allowed to call your home or mobile phone repeatedly in order to get you to answer. In Australia, you can receive three phone calls or letters a week with a maximum of ten per month. Any more than this is classed as debt collector harassment and if you’re a victim of this bad practice you can make a consumer complaint.
Also, they cannot call you without telling you who they are.
Call outside of Australian regulated hours
Like anyone, you’re still entitled to privacy outside of working hours despite having debts. Don’t put up with cold calls from debt collectors outside of the regulated time slots—7:30 am–9:00 pm on weekdays and 9:00 am–9:00 pm on weekends.
In addition to phone calls, debt collectors can only visit your home to speak face to face between 9:00 am–9:00 pm on weekdays and weekends. Lastly, contact is totally prohibited on any national or public holiday in Australia.
Make threats or use abusive language
While making a demand for repayment isn’t considered debt collector harassment, threatening behaviour is.
If you’ve been physically threatened or forcefully coerced, then your rights have been violated. It’s also vital to remember that the consumer rights you have also extended to your spouse, partner and family members. Depending on the severity of the threats, you may wish to contact the police or opt to make a complaint instead.
Publicly share your private debt information
While this is highly unlikely to occur, it’s possible that an unscrupulous collector may try to get your attention by publicly airing your debts. Any form of exposure that shows your private debt information is a breach of your rights. So, sending you a postcard or taking out an advertisement in newspapers, magazines and other media platforms is prohibited.
Tell lies about who they are or what they want
Debt collector harassment can take many forms and one of the scariest is through deception. Collectors may tell you that they are in fact police officers or members of the court in order to coerce you into paying off more debt than you can currently afford. If anyone visits your property or contacts you claiming to be a person of authority you should take their name and relevant contact details before calling your creditor or the police.
What Are My Rights Against Debt Collectors?
Australian citizens have six rights against debt collectors that are based on basic human needs and values. If any of these broad rights are violated, you have a viable case for the ACCC if not the court of law. You have the right to:
✓ Live in peace and quiet.
✓ Request for the debt collector to cease all contact.
✓ Demand that the debt collector proves your debt.
✓ Be treated with courtesy and respect.
✓ To pay your debts in the manner that suits you best.
✓ To sue your debt collector in court for violating any of your rights.
Warning: Telling a debt collector to stop contacting you does not prevent the debt collector from pursuing other legal ways to collect the debt from you if you owe it, including a lawsuit against you or reporting negative information to a credit reporting company.
Hire The Best Lawyer in Sydney Who Cares About Your Needs
Remember, collecting debts sends a strong message that you are serious about credit control. Therefore, there are many debt collector regulations in Sydney that debt collectors have to follow.
A good Lawyer in Sydney like Jeffrey of JCL Legal will be able to assist you with any legal issues in an efficient manner. To better your chances of meeting your goals in a timely manner, they can handle negotiations on your behalf and if needed, represent you in court.
During these uncertain times, if you're looking for the best lawyer in Sydney CBD, NSW, Jeffrey is available by mobile phone. Please call him on 0419 233 670.
Contact JCL Legal now! We are a law firm that cares about your needs.
sources: debtbusters.com.au, getoutofdebttoday.com.au, debtbusters.com.au, consumerfinance.gov
