The Australian Competition and Consumer Commission and Australian Securities and Investments Commission today issued their joint draft debt collection guideline for public consultation.
The draft guideline details the provisions of the federal consumer protection legislation most relevant to the debt collection industry*, including prohibitions against misleading and deceptive conduct, harassment and coercion, and unconscionable conduct.
"The relevant regulatory framework and the debt collection industry has changed a lot since the ACCC released Debt collection and the Trade Practices Act in 1999. This draft guideline provides guidance to the debt collection industry on how to avoid breaches of these laws, as well as to consumers who are subject to debt collection activity, and creditors who use external agencies to collect debts", ACCC Deputy Chair, Ms Louise Sylvan, said today.
"The draft guideline reflects not only recent relevant court decisions, but also changes in the industry’s structure and practices. The joint guideline acknowledges the role of ASIC in enforcing federal consumer protection legislation in relation to financial services. This is a role ASIC did not have in 1999 **", ASIC Executive Director of Consumer Protection, Mr Greg Tanzer, said.
"Production of the draft guideline is a continuation of co-operative work between ASIC and the ACCC in relation to debt collection. It is a follow up to the release of Complaints about debt collection activity – the responsibilities of Commonwealth agencies on 8 November 2004***", Mr Tanzer said.
Both the ACCC and ASIC are interested to hear the views of all stakeholders regarding the draft guideline and encourage all interested parties to make written submissions.
The draft guideline and Discussion Paper are available on the ACCC website and the ASIC website at www.asic.gov.au. Details about how to lodge a submission are contained in the Discussion Paper. Submissions are due by Thursday 31 March 2005.