International Law

The ACCC has released an issues paper jointly produced by the ACCC and the Australian Securities and Investments Commission, Debt collection practices in Australia.

This paper summarises major issues identified by the ACCC and ASIC during information-gathering activities undertaken in 2008:

• Harassment and coercion 
• Disputes about the debt
• Debt assignment and/or selling
• Incorrect credit default listing
• Difficulties negotiating repayment arrangements
• Representations on consequences of non-payment
• Jurisdiction in which proceedings are instituted
• Enforcement responses
• Compliance programs
• Complaints handling?internal dispute resolution
• Complaints handling?external dispute resolution
• Financial hardship

Feedback on this paper has been invited by 30 June 2009

ASIC is responsible for ensuring activities of creditors/collectors engaged in recovering
outstanding debts arising from the provision of financial services are compliant with
the ASIC Act. The ACCC is responsible for ensuring compliant collection activity for
debts arising from the supply of non-financial products and services under the Trade
Practices Act. State and territory offices of fair trading also regulate the activities of
creditors/collectors under fair trading acts and other legislation.

Regulation of debt collection activities may be affected by proposed changes to
consumer protection legislation (Australian Consumer Law and the National Consumer Credit Code).