Debt |
If you are struggling with debt, or think you might soon be unable to pay your debts, talk to your lender immediately.
Ask a financial counsellor for advice and start using a budget planner (xls, 268 KB).
If you cannot pay the debt
If you cannot pay your debts because of illness or unemployment, and think it would help to change your contract terms, apply to the lender to change your contract on the grounds of hardship. For more information, visit the ASIC consumer website.
In Queensland you cannot go to jail because you cannot pay a civil debt. However, if the State Penalties Enforcement Registry is pursuing you for an unpaid fine, you can be jailed in certain circumstances.
Debt collectors
If you owe money, you may be contacted by a debt collector. It could be a creditor who is collecting the debt themselves or somebody acting on behalf of a creditor. If they are collecting on behalf of a creditor they must hold a licence as a Commercial Agent under the Property Agents and Motor Dealers Act 2000.
A debt collector should only contact you when it is necessary to do so. They can:
- find or repossess goods that are entitled to be repossessed under an agreement such as a mortgage
- make a demand for payment
- collect debts including making arrangements for debts to be repaid
- find out why an agreed repayment plan has not been honoured
- review a repayment plan after an agreed period of time
- serve you with court documents like a writ, claim, application or summons.
If you believe you do not owe the money, ask the debt collector to provide you with details about who the debt is owed to. Also ask for an itemised statement detailing the amount of the debt plus any associated fees and charges.
More information on dealing with debt is available in the Australian Competition and Consumer Commission´s Dealing with debt brochure.
What debt collectors can do
By law, if you owe money to someone, they can engage a debt collector to:
- write you a letter or ring you to demand payment
- serve you with documents to summons you to court
- find and repossess goods where the creditor has an agreement to do so, such as a security interest (loan collateral) or a court order.
What debt collectors cannot do
Debt collectors cannot:
- have you sent to jail
- take any of your property when they do not have an agreement to do so such as a security interest under a loan or court order
- threaten, physically intimidate or harass you
- contact you more than twice a week
- communicate with you late at night or in the early hours of the morning unless you authorise it
- require you to comply with conditions that are not reasonably necessary
- take advantage of your lack of understanding
- disclose private information to a third party without your permission
- make you pay for their costs to recover the debt.
Last reviewed 18/11/2011 |
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