What debt collectors can and cannot do under Australian law
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Debt collectors have strict rules about how they can contact you and what they can say. Many people don't know these rules — which means they get away with behaviour that's actually illegal.
This is general information, not financial or legal advice. For help with your specific situation, call the National Debt Helpline on 1800 007 007 (free, confidential).
Debt collectors should tell you who they are, who they're collecting for, and the amount owed. They must check they're speaking to the right person, and shouldn't pursue you unless they have reasonable grounds to believe you owe it.
Collectors cannot use threats, aggressive language, or intimidation. They cannot imply criminal consequences for unpaid debt (most debts are civil, not criminal).
The guideline recommends no more than 3 contacts a week or 10 a month for each account (calls, texts, emails and letters all count). No calls before 7:30am or after 9pm on weekdays, before 9am or after 9pm on weekends, and none on national public holidays.
You can tell a collector you only want to communicate in writing. This gives you time to think, get advice, and have a paper trail.
You can tell a collector not to contact you at your workplace. If you ask them to stop and give them another way to reach you, they should stop.
If you say the debt isn't yours, was never owed or is already paid, the guideline says collection should stop until they confirm it. You can ask for copies of the contract and statements, and they should send them without unreasonable delay.
Debts have a time limit (usually 6 years; 3 years in the Northern Territory), counted from when you fell behind, or from your last payment or written acknowledgement if that was later. After it passes, the creditor can't win in court if you rely on the time limit, though they may still contact you. While the time is still running, a payment or a written acknowledgement of the debt can restart it. In NSW, paying after the time limit has passed doesn't bring the debt back; other states may differ.
If a debt collector breaches these rules, you can complain for free to AFCA (banks and lenders), and report the collector to ASIC (credit and loan debts) or the ACCC (phone, utility and other debts); neither resolves individual disputes. For phone, internet, energy or water debts you can also complain for free to the TIO or your state's energy and water ombudsman. You can also complain to your state's fair trading body.
Select your state above to see local ombudsmen, grants, and contact numbers.
Usually not at first. Most creditors start with questions, not documents, and many ask about your income, spending and debts. Some want documents or a full statement before deciding, especially for longer help or a waiver.
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If you say you can't afford to repay, the collector is entitled to make reasonable enquiries into your finances. The guideline doesn't set a list of documents.
Many collectors ask about your income, spending and debts. Some also ask about dependants or for a full statement.
If you've said you can't afford to repay and you tell them you'll see a financial counsellor, they should not contact you until a reasonable time has passed.
If the debt may be old, check the dates before you make any payment or admit the debt in writing.
“Please send me proof of this debt, including the date of the last payment. I'm not agreeing that I owe it until I've seen that.”
A financial counsellor can negotiate with companies on your behalf — for free.