The Australian Competition and Consumer Commission and the Australian Securities and Investments Commission will hold a phone-in day dedicated to debt collection concerns on Thursday (31 July 2008).
"The Debt Collection Day is a joint-initiative to assist consumers who have experienced problems with debt collectors or creditors," ACCC Chairman, Mr Graeme Samuel, said.
"The purpose of the day is to gather information about issues of concern in relation to debt collection and unlawful conduct by debt collectors or creditors, and increase consumer awareness of their rights and avenues for complaint," ASIC Chairman, Mr Tony D'Aloisio, said.
Consumers can call the hotline on 1300 302 502 anytime from 8.30 a.m.-5.30 p.m. AEST on Thursday.
Mr Samuel and Mr D'Aloisio noted that both agencies have been concerned about reports of unlawful practices adopted by debt collectors and creditors when attempting to secure repayment of debts. Some of the conduct raising concerns for the ACCC and ASIC includes:
heavy-handed collection tactics, including persistent and unreasonable levels of contact
misrepresenting the consequences of non-payment
unconscionable conduct in relation to the establishment of repayment agreements
inappropriate contact with, or representations to, family members, work colleagues and other third parties in breach of privacy laws
assignment or sale of the debt without notifying the debtor, or
misidentification of alleged debtors and inappropriate credit default listing.
The ACCC and ASIC remain concerned about ongoing reports of harassment and coercion, and other problems in relation to debt collection practices.
"We remind businesses that while they are entitled to recover debts owed to them by consumers that they must conduct all collection practices in a professional manner," Mr D'Aloisio said.
"We will not tolerate conduct where consumers have been threatened by debt collectors. Consumers who have been contacted at their home or workplace at unreasonable times, threatened verbally or physically, or have been hassled about debts they do not owe or have paid, are urged to call the hotline," Mr Samuel said.
The ACCC and ASIC will use the information obtained during the phone-in day to assess possible breaches of the Trade Practices Act or ASIC Act.
Hotline staff cannot provide advice to help resolve financial difficulties. Consumers experiencing difficulties meeting their financial commitments should contact a financial counsellor as soon as possible.
Consumers are encouraged to visit FIDO, ASIC's consumer website (www.fido.gov.au) or the ACCC website (www.accc.gov.au) for advice on managing money and debt problems.
Contact details for local financial counselling services can be found on the Australian Financial Counsellors and Credit Reform Association website (http://www.afccra.org/counselling.htm).
The Financial Information Service (FIS) available through Centrelink also provides education and information on a wide range of financial issues. Call 132 300 and ask for the Financial Information Service or 136357 to book into a seminar.
Media inquiries
Mr Graeme Samuel, Chairman, 0408 335 555
Ms Lin Enright, Director, Media Unit, (02) 6243 1108or 0414 613 520
Additional contacts
Ms Danielle McInerney, ASIC Media Unit, (03) 9280 3407 , 0417 540 796 , 1300 300 630
The ACCC and ASIC jointly produced Dealing with debts: Your rights and responsibilities, a consumer booklet that outlines consumers' rights under the Commonwealth consumer protection laws, as well as general advice for those who are having difficulties with their level of debt or dealing with debt collectors. This booklet is available in Arabic, Chinese, Greek, Italian, Turkish and Vietnamese.
The ACCC and ASIC also jointly released a revised Debt collection guideline: for collectors and creditors in October 2005. The guideline provides advice to creditors and debt collectors on practices they can adopt to minimise the risk of breaching the TPA or the ASIC Act.
Both publications are available free of charge by contacting the ACCC Infocentre on 1300 302 502 or ASIC's Infoline on 1300 300 630. Electronic copies of these publications are also available from the ACCC website (www.accc.gov.au) or FIDO, ASIC's consumer website (www.fido.gov.au)
