Your Rights Around Debt Collection
If you have fallen behind in the payment of a debt, a creditor or a debt collector will probably contact you. You may get a phone call, a letter or both. Debt collection is legal, but there are clear rules and guidelines debt collectors must follow. They also have to respect your rights, including your right to be treated fairly, your right to not be discriminated against, your right to privacy, your right to get help, and your right to question the debt.
If you’re threatened with legal action, ask the debt collector to delay legal action to give you time to get legal advice.
What debt collectors can do
They can contact you to:
- Ask for payment
- Offer to settle or make a payment plan
- Ask why you haven’t met an agreed payment plan
- Review a payment plan after an agreed period
- Advise what will happen if you don’t pay
- Repossess goods you owe money on, as long as they’ve been through the correct process.
There are restrictions on how and when debt collectors can contact you
By phone
- Monday to Friday, 7:30am to 9pm. Weekends 9am to 9pm
- No more than 3 times a week, or up to 10 times a month
- Not on national public holidays
Face to face
- Should only be used as a last option if you haven’t responded to phone calls or other ways they have tried to contact you
- Any day between 9am and 9pm
Email and social media
- Will only be used if they’re reasonably sure you don’t share your account and only you can see your messages
What debt collectors can’t do
By law, debt collectors must not:
- Trespass on your property
- Use overbearing tactics or abusive language
- Harass or contact you at unreasonable times – or more than is needed
- Mislead or deceive you
- Take unfair advantage of you because of illness, disability, age, illiteracy, or lack of understanding of the law
- Discuss your debt with someone else without your permission.
These protections also apply to your family.
Keep good records
It is a good idea to keep a record of all contact with the debt collector. Make sure you include:
- The date and time of contact
- The name of the debt collector and company they work for
- How they contacted you (in person, by phone, letter, email or text)
- Who said what.
If a debt collector’s behaviour is unacceptable
If a debt collector threatens you with violence or physical force, contact the police immediately. If they’re harassing or intimidating you, ask them in writing to stop it. The Financial Rights Legal Centre has a letter template you can use.
Tell your financial counsellor or seek Legal Advice if you believe that any debt collectors you are in contact with are in breach of these guidelines for debtor harassment.
