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Debt collection for overdue charges

We can help with your complaint about how your provider or its collection agents have collected debt for overdue charges. To resolve your complaint, we consider the law, good industry practice and fairness.

Types of complaints about debt collection

We deal with complaints about debt collection such as:

  • consumers being pursued for payment of charges they dispute
  • providers selling debts without telling the consumer
  • harassment by collection agents
  • debt collection that continues after bankruptcy or the end of the limitation period – that is, the period in which a creditor is legally allowed recover debts.

The law and good industry practice

Providers and collection agents can’t harass, threaten or mislead you 

It’s illegal for providers or collection agents to use physical force, harassment or coercion to recover debt from you. They must not mislead you about your debt or the consequences of not paying. 

Providers must tell you if they sell your debt 

If your provider sells a debt of yours, they must tell you, in writing, within 25 business days.

Debt collection should stop after bankruptcy or the end of the limitation period

If you declare bankruptcy, generally, your provider must stop debt collection. It must also stop debt collection after the limitation period, which is six years in most states and territories.


Has your question been answered? Find out more about debt collection complaints and how we handle them in our position statement on collecting overdue charges.

Here's how other cases were managed

Complaint
Consumer had a debt to a provider for a service they never resulting in a default listing that affected their ability to secure a home loan.
Outcome
The consumer had the credit default removed and received compensation from the service provider.
Complaint
Consumer agreed to a payment plan, but the debt was then on-sold to a debt collector.
Outcome
A financial counsellor approached the TIO on the consumer's behalf, and the original payment plan was reinstalled.

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This page was last updated on
12th Nov 2019
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