Clear guidelines about what is or isn't harassment in debt collecting were launched today by the Australian Competition and Consumer Commission Deputy Chairman, Mr Allan Asher.
"Is it harassment to ring someone regularly early in the morning or late at night to recover a debt? Is it right to contact a person's workplace leaving urgent messages?
These are some of the situations canvassed in Undue harassment and coercion in debt collection," Mr Asher said at the guideline's Melbourne launch today.
The launch was attended by representatives of consumer organisations, credit services, counselling services, financial organisations and debt recovery services.
"In 1998 the ACCC received more than 230 complaints and inquiries about what constituted debt harassment. Although the complaints were not tested in the Courts by the ACCC, it indicates the level of concern in the community.
"The ACCC has worked with both sides of the complaint, the collectors and the consumers' representatives, to come up with a guideline that is both fair and reasonable.
"I am pleased by the level of support shown for these guidelines in both their development and their implementation.
"With other agencies at the 'coalface' of the problem of harassment, the ACCC has identified areas of concern including: Unreasonably frequent telephone calls and/or calls late or early; Contacts at the debtor's workplace in a way where the debtor's job maybe endangered; Deceptive tactics about the consequences of non-payment or about the recovery process; Disclosure of loan information to third parties; Threats to disclose debts to employers, child welfare agencies and similar; and Abusive language.
"Section 60 of the Trade Practices Act 1974 forbids corporations from engaging in 'physical force, undue harassment or coercion, in connection with the supply of goods or services to a consumer, or in the connection with the payment for goods or services by a consumer'," Mr Asher said.
"This is a little used section of the Act but it does afford some protection to consumers, particularly 'battlers', who find themselves in debt because of unforeseen circumstances such as redundancy or illness.
"Rather than seek an action in the Court, which may have immediate if limited effect on such behaviour, the ACCC chose to work with the industry and consumers to resolve the problem.
"This guideline is the result of that work.
"Copies of the report containing the guideline will be available from all ACCC offices in each capital city, Townsville and Tamworth or from the Publications Office, (02) 6243 1143. The guideline is also available on the ACCC website: www.accc.gov.au".
"Is it harassment to ring someone regularly early in the morning or late at night to recover a debt? Is it right to contact a person's workplace leaving urgent messages?
These are some of the situations canvassed in Undue harassment and coercion in debt collection," Mr Asher said at the guideline's Melbourne launch today.
The launch was attended by representatives of consumer organisations, credit services, counselling services, financial organisations and debt recovery services.
"In 1998 the ACCC received more than 230 complaints and inquiries about what constituted debt harassment. Although the complaints were not tested in the Courts by the ACCC, it indicates the level of concern in the community.
"The ACCC has worked with both sides of the complaint, the collectors and the consumers' representatives, to come up with a guideline that is both fair and reasonable.
"I am pleased by the level of support shown for these guidelines in both their development and their implementation.
"With other agencies at the 'coalface' of the problem of harassment, the ACCC has identified areas of concern including: Unreasonably frequent telephone calls and/or calls late or early; Contacts at the debtor's workplace in a way where the debtor's job maybe endangered; Deceptive tactics about the consequences of non-payment or about the recovery process; Disclosure of loan information to third parties; Threats to disclose debts to employers, child welfare agencies and similar; and Abusive language.
"Section 60 of the Trade Practices Act 1974 forbids corporations from engaging in 'physical force, undue harassment or coercion, in connection with the supply of goods or services to a consumer, or in the connection with the payment for goods or services by a consumer'," Mr Asher said.
"This is a little used section of the Act but it does afford some protection to consumers, particularly 'battlers', who find themselves in debt because of unforeseen circumstances such as redundancy or illness.
"Rather than seek an action in the Court, which may have immediate if limited effect on such behaviour, the ACCC chose to work with the industry and consumers to resolve the problem.
"This guideline is the result of that work.
"Copies of the report containing the guideline will be available from all ACCC offices in each capital city, Townsville and Tamworth or from the Publications Office, (02) 6243 1143. The guideline is also available on the ACCC website: www.accc.gov.au".