International Law

Debt collection practices

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.

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.

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.

Full post as published by Australian Regulatory Compliance Review on July 28, 2008 (boomark / email).