Are you currently in debt and worried about what debt collectors can do to you? We’ve put together a list to show you what they can do to collect their debts.
What is a Debt Collector?
A debt collector is usually an agent who acts on behalf of a creditor (a person to whom you owe money). Debt collectors’ activities are limited by the Fair Debt Collections Practices Act.
Why Am I Being Contacted By A Debt Collector?
A debt collector may contact you by phone, letter, email, social media or by visiting you in person. This can be for one or more of the following reasons:
- Update you with information regarding an overdue account;
- Ask for payment on an unpaid debt;
- Explain the consequences of non-payment;
- Offer alternative payment arrangements, or alter existing arrangements in order to settle an unpaid debt; and
- Enforce a summons, statement of claim or liquidated claim by repossessing assets (if they are in right to do so).
What Can’t A Debt Collector Do?
It is against the law for debt collectors to behave in the following ways:
- Threatening, trespassing or intimidating: This includes: threatening physical force; damaging property; blocking access to your property; remaining on your property without a court order when asked to leave;
- Harassment or verbal abuse: This includes contacting you more than necessary or at unreasonable times and using unprofessional language or tone; or
- Using deceptive conduct to make false or misleading statements: This includes making false statements about the money you owe or what will happen if the debt is not paid. They cannot send letters demanding payment that are designed to look like court documents; or pretend to be or to act on behalf of a solicitor, court or government body.
If you would like to learn more about your options to deal with unmanageable debt, contact our friendly and professional debt advisors at Debt Free Australia for a FREE debt assessment. Call us on our 24/7 debt advice line on 1800 676 598.