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 am - 5.30 pm 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 or the ACCC website 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.
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.