Dealing with debt

Your rights and responsibilities

About ASIC
The Australian Securities and Investments Commission (ASIC)
regulates financial advice and financial products (including credit).
Our website for consumers and investors, MoneySmart, offers you
free and independent tips and safety checks about the financial
products and services we regulate.
Visit www.moneysmart.gov.au or call ASICs Infoline on
1300 300 630.

About the ACCC

The Australian Competition and Consumer Commission (ACCC) is
the general consumer protection regulator and is responsible for
regulation of goods and services generally.
For further information visit the ACCCs website on
www.accc.gov.au or call the ACCCs Infocentre on 1300 302 502.

About this booklet

This booklet is for you, if you:

XX

owe a debt and want more information about your rights and
responsibilities

XX

are having trouble paying your debts

XX

have been approached by a debt collector

XX

have been threatened with legal action

XX

dispute a debt, or the amount of your debt

XX

think there is a legal reason that allows you to refuse to pay a debt

XX

have a partner, relative or friend who is in debt

XX

believe you might be responsible for someone elses debt

(e.g. you are a guarantor or co-borrower).

Dealing with debt

Contents
Key tips about debt

Are you in debt?

Dealing with your debts

Dealing with debt collectors

Disputing a debt

13

Are you being taken to court?

16

Your legal rights and protections

20

Unacceptable behaviour by debt collectors

21

To find out more

27

Key tips about debt

XX

Manage your finances and plan your budget, so that debts dont build
up and take you by surprise.

XX

A free and independent financial counselling service may be able to

help you if you are having trouble paying your debts or managing your
budget.

XX

If you cannot meet your financial commitments, contact the creditor

(the business or person you owe money to) without delay to discuss a
repayment plan.

XX

When negotiating a repayment plan, be realistic about what you can pay
taking into account your other financial commitments. Be honest with
the creditor or debt collector about your situation.

XX

Keep copies of any letters you send or receive (and notes of any
conversations you have).

XX

Make sure you actually owe the debt. Ask for proof (e.g. documents,
account statements) if you think a debt is not yours or if you disagree
with the amount demanded. Get independent advice if you are still not
sure whether you have to pay some or all of a debt.

XX

If you are contacted about a debt that is several years old, do not
confirm the debt or make a payment until you get independent advice.

XX

If you are threatened with legal action, get advice about your options as
soon as possible.

XX

If you are contacted about a debt, be cooperative, and expect to be

treated professionally. Make a formal complaint if a creditor or debt
collector misleads you, threatens you or is abusive.

Dealing with debt

Are you in debt?

If you have borrowed money, bought something with finance, have a loan
or a credit card debt or owe money for bills or accounts, you have a legal
responsibility to repay the money you owe.
You must not try to avoid your responsibility to repay your debts.

Quick tip
You should get advice immediately if you have been contacted
about a debt and you think:
XX

you dont owe the debt

XX

you only owe part of the debt

XX

you have a legal defence against the debt.

See Disputing a debt on page 13, for more details.

Are you responsible for someone elses debt?

You are generally not legally responsible for paying another persons
debts even if that person is your spouse, partner or child. If someone
you know has a debt problem, encourage them to see a financial counsellor
(or, if appropriate, a gambling counsellor) without delay.
Sometimes people do make themselves legally responsible for other
peoples debts by agreeing to be a co-borrower or guarantor for a loan.
Think very carefully before you agree to be a co-borrower or guarantor
even though you might not benefit from the loan yourself, you could end
up being liable (i.e. legally responsible) for the entire amount owing if the
person who took out the loan defaults on their repayments.
You should get advice if:
XX

you agreed to be a co-borrower or guarantor under pressure or

through fear

XX

you did not understand the nature or extent of the commitment you
were making.

Dealing with your debts

People get into financial difficulties for many reasons, including
unemployment, relationship breakdown, illness or excessive use of credit.
If you are struggling to keep up with your debt repayments, dont try to
ignore the problem, or hope it will go away take control of the situation.
Take some time to think about your income, expenses, assets and liabilities,
and work out a budget so that you can meet your financial commitments
when they are due. A free and independent financial counselling service
may be able to help you with this process.

Find out more

Financial counselling services help people who are in financial difficulty.
They are available in every state and territory and provide a free,
independent and confidential service. See page 27 for more details.
Some businesses also provide a service to help people struggling with
debt for a fee. Make sure you know what service you are getting
from these businesses, how much it is going to cost you and whether
you can get the same service for free from a financial counsellor.

If you cannot keep up your debt repayments, you should contact your
creditor (the person or business you owe money to) as soon as possible
to discuss your situation. Try to agree on a repayment plan that you can
manage.
If you ignore debt problems, they are only likely to get worse. Interest
will probably continue to be charged on top of the debt and if the debt
is secured against any of your assets (e.g. your car), these assets may be
repossessed and sold. Also, your credit rating is likely to be affected and
you might be sued.
Even if you think you cannot pay or you feel the situation is hopeless,
you need to act. You do have options contact a free and independent
financial counselling service to discuss them.

Dealing with debt

Dealing with debt collectors

A debt collector is a person who collects debts in the course of a business.
This could be:
XX

a creditor collecting a debt themselves (this includes assignees

people or businesses who have been sold or assigned a debt by the
original creditor)

XX

someone acting on behalf of the creditor (e.g. an independent collection

agency).

If a debt collector contacts you, be cooperative. In turn, you should expect

to be treated in a professional manner. Excessive or unreasonable contact
by a debt collector may be unlawful. See Unacceptable behaviour by debt
collectors on page 21.

When, where and why can you

be contacted about a debt?
A debt collector should only contact you when it is necessary to do so and
when the contact is made for a reasonable purpose.
A reasonable purpose includes:
XX

making a demand for payment

XX

making arrangements for repayment

XX

finding out why an agreed repayment plan has not been met

XX

reviewing a repayment plan after an agreed period of time

XX

inspecting or recovering mortgaged goods (if they have a right to do so).

As a guide, if contact is necessary, it should be limited (unless you request

or agree otherwise) to:
XX

a maximum of 3 phone calls or letters per week (or 10 per month)

XX

phone contact only between the hours of 7:30 am9:00 pm on weekdays

and 9:00 am9:00 pm on weekends

XX

face-to-face contact only between the hours of 9:00 am9:00 pm on

weekdays and weekends

XX

no contact on national public holidays.

Generally, visits to your home (or another agreed location)

should only occur if there is no other way the debt collector
can make effective contact with you, or if you ask for
(or agree to) a visit. If repayment arrangements can be worked
out over the phone or by letter, then face-to-face contact should
not be necessary.
As a guide, any personal visits should be limited to once per
fortnight and take place between 9:00 am and 9:00 pm (unless you
ask for a different time). A debt collector should not visit you at
your workplace unless you request them to, or if you havent given
them any other effective way to contact you. If a debt collector does
contact you at work, they must not reveal information about your
financial situation to others.

Dealing with debt

Negotiating a repayment plan

Creditors will often agree to an extended period for repayment (or smaller
periodic repayments over a longer time) when people get into difficulties.
Sometimes they will be willing to settle (finalise) the whole debt on the
basis of a lump sum payment of part of the debt. You may be able to
negotiate such arrangements through the debt collector.
If you are negotiating a repayment plan, offer what you can afford to pay
but be realistic about your living costs and your other debts. Also be open
and honest with the creditor or debt collector about your other financial
commitments.

Quick tip
In the case of consumer credit such as home loans, personal loans,
credit cards, car loans and consumer loans, you may have a right to
seek a hardship variation. This is a formal process where you ask
your credit provider to vary the terms of your loan contract. See
pages 1011 for an example of how to request a hardship variation.
For more information, download the Cant pay your debts?
factsheet from www.moneysmart.gov.au or talk to a free and
independent financial counselling service or a community legal
service. See pages 2729.

Sample letter
Dear ____________

Below is an example of a letter requesting a

hardship variation that might help you write
your own letter. A request for a hardship
variation does not need to be made in writing.
You may prefer to apply over the phone.

(Date)
(Name of lender or creditor)
(Name of department the letter should go to,
e.g. Customer service department)

Phone the lender or

creditor and ask which
specific department to
send your request for
hardship variation to.

(Address of lender or creditor)

Dear Manager,
Request for change to repayments on the grounds of hardship
Account name:
Account no:
I/We currently have a loan/account with (name of creditor) __________.
The account number is _____________ and we pay $_________
each (week/fortnight/month) ____________ .
I/We wish to apply to you for a variation of the above contract
under section 72 of the National Consumer Credit Code.
I/We request that:
1. each repayment be reduced to ($ per week/fortnight/month)
_____________. This change is requested from (Date) _______
until (Date) _______.
2. the repayment due on (Date) _______ be postponed so that it is
now due on (Date) _______, with the next repayments being due
on the following dates: (Date) ___________.
3. the repayments due between (Date) _______ and (Date) _______
be postponed until (Date) _______.
Choose one option only

10

Dealing with debt

I/We understand that where I am/we are requesting the payments

be reduced or postponed, there will be no change in the annual
percentage rate and the term of the loan/account will be extended
accordingly.
I am/we are unable to meet my/our current payment obligations because:
Provide details of illness, unemployment or other
reasons for your hardship and expected date for
recovery/employment/change in your circumstances.
In support of my/our application I/we give the following details:
Details of income and expenditure:
XX

My/our current income is ($ per week/fortnight/month) __________________.

XX

My/our current expenses are ($ per week/fortnight/month) _______________.

XX

Rent/mortgage ($ per week/fortnight/month) __________________.

XX

Other loan repayments ($ per week/fortnight/month) __________________.

XX

Other major expenses ($ per week/fortnight/month) __________________.

I/We expect that I/we will be able to meet the obligations of our
loan/account if you agree to this proposed change.
I/We understand that you will give me/us a written reply within
21days of receipt of this application, stating whether or not this
variation has been agreed to, and provide me/us with the name of
your external dispute resolution scheme and my/our rights under
thatscheme if this application is refused.
I/We assume you will stay all enforcement action while you
considerthis application. If this is not possible, please let me/us
knowimmediately in writing.
I/We await your reply in writing.
Yours sincerely,
____________________
(Full name)

11

Dont give up if a creditor or debt collector tells you they will not accept
a repayment plan. Put your situation in writing and tell them how much
you can afford to pay, and how often. Meanwhile, you should keep making
payments at the level you can afford. Dont be pushed to make promises
you wont be able to keep.
If you reach an agreement with the debt collector:
XX

write a letter to the debt collector confirming the agreement

XX

ask for it to be confirmed in writing

XX

keep a copy of the letters.

Then make every effort to keep to the agreement.

Record keeping
It is important to keep good personal records. Remember the
following tips:

Keep receipts or other records of payment and copies of any

letters you send or receive (when writing letters, remember to

include the date).

If you are asked to provide documents, make sure you keep a
copy for yourself (if possible, keep the original and send the
copy).

Keep a note of telephone conversations or meetings. Write

down the time, date and whom you spoke to (their name, their
company or business and their job title).

If you make an agreement over the phone or in person, ask for it

to be confirmed in writing (and also confirm it in writing yourself).

Keep all your records together to avoid losing any important

information.

12

Dealing with debt

Disputing a debt
If you are contacted about a debt you do not owe (or if you disagree with
the amount of the debt being claimed), you have a right to dispute the
debt or the amount of the debt.
When you make a reasonable request, debt collectors should be prepared
to give you account information and copies of contracts (if the debt
collector is acting on behalf of a creditor, they may refer your request to the
creditor). For home loans (except for investment properties), personal loans
and credit card debts, you have a specific right to this information by law.
If you are disputing a debt, a debt collector should stop collection activity
until any reasonable request for information has been met, and the debt
has been confirmed. Also, a default listing on your credit report should not
be made during this period.

That is not my debt!

In cases of mistaken identity, showing your drivers licence or other ID
may resolve the situation. However, the decision to show ID is yours you
cannot be forced to do so by a debt collector.
Identity fraud is when a person or group uses your personal details for their
own financial gain (e.g. to run up a debt in your name). If you think this has
happened, contact the creditor or your financial institution immediately.
You can also get a copy of your credit report (for free) to make sure no
fraudulent transactions have been made in your name. See page 28
for more details or download the Your credit report factsheet from
www.moneysmart.gov.au.

13

I thought that debt had been settled!

Sometimes a debt collector might contact you about a debt even though
you have paid it in full, or it has already been settled in some other way.
If this is the case, explain the situation to the debt collector in writing
and include copies of any records or information you have that prove the
debt has been settled. This is why it is always important to keep your own
records of your debts, even when they have been paid.
If the debt has already been settled, you should also ask the debt collector
why they are contacting you. If the collection activity continues without an
adequate explanation, make a complaint. See To find out more, pages 2733.

I dont think I owe that much!

You might accept that you owe the debt but disagree with (or are unsure
about) the amount claimed. If this is the case, ask for an itemised statement
of your account that clearly sets out:
XX

the amount and date of the alleged debt

XX

how it is calculated

XX

details of all payments made and all amounts owing (including principal,
interest, fees and charges).

Quick tip
Check the statement carefully. It might include recovery fees or
expenses charged by the debt collector.
Check whether you have to pay these and get advice if you think the
fees are unfair. For example, did your original contract say anything
about these fees or expenses?

14

Dealing with debt

Dispute resolution schemes

You may be able to resolve an ongoing dispute with a debt collector using
an independent body (e.g. a fair trading tribunal or independent dispute
resolution scheme).
There are independent dispute resolution schemes for the banking,
telecommunications and utilities industries. These schemes are available
to consumers free of charge, and scheme members must comply with their
decisions. See pages 3031 for their contact details.

Quick tip
Make sure you refer an unresolved dispute to a scheme or tribunal
without delay. Generally, legal proceedings cannot be started
against you while a matter is being considered by one of these
bodies.
If legal proceedings have started but judgment has not been
entered, and you have not taken any action beyond lodging a
defence (or lodging a defence and counterclaim), you can still
take your dispute to an external dispute resolution scheme.
Seepages3031 for contact details.

15

Are you being taken to court?

Creditors have the right to start legal proceedings to recover money
in other words, they can sue you for a debt. If they do, these legal
proceedings will be civil rather than criminal, and will have nothing to do
with the police or the possibility of jail.
If you receive notice that you are being taken to court (such as a summons,
statement of claim or liquidated claim) you should act without delay.
The action you decide to take will depend on whether or not you dispute
the debt.
If you are sure that you owe the amount claimed and if you cannot pay the
full amount, think about applying, within any timeframe allowed, to pay
by instalments. You can arrange this with the court staff or with an external
dispute resolution scheme. See pages 3031 for their contact details.
You could also request a postponement of enforcement from your lender
or creditor to stop the repossession or sale of your goods.

Dear ____________

Sample letter
Opposite is an example of a postponement
of enforcement letter that might help you
write your own letter.

If your creditor refuses your request for postponement, it must respond

to you in writing and give you the name of its external dispute resolution
scheme. You can also request a postponement of enforcement by going
to court.

16

Dealing with debt

(Date)
(Name of lender or creditor)
(Name of department the letter should go to,
e.g. Customer service department)
(Address of lender or creditor)

Phone the lender

or creditor and
ask which specific
department to send
your request for
postponement to.

Dear Manager,
Request for a postponement of enforcement proceedings
Account name:
Account no:
I/We currently have a loan/account with (name of creditor) ____________.
The account number is _________________ and I/we pay $_________
each ($ per week/fortnight/month).
On (date) ___________ your organisation began enforcement action to
(repossess my/our goods/car/home/insert your details) ______________________.
I/we ask that you postpone the exercise of your rights and postpone
any applicable acceleration clause under the contract.
I/We anticipate being in a position to:
1. pay out the loan on (date) ___________ .
2. pay the arrears owing (and any payments
falling due during that time) on (date) ___________ .

Choose one
option only

Please consider this application as a matter of urgency.

I/We assume you will stay all enforcement action while you consider
this application.
If this is not possible, please let me/us know immediately in writing.
I/We await your reply in writing.
Yours sincerely,
____________________
(Full name)

17

If you dispute the debt because you do not owe the amount claimed, only
owe part of the amount, or think you have a defence:
XX

Contact your lender or creditor and tell them you dispute the debt.

XX

Get legal advice immediately. See page 29 for contact details.

XX

Consider lodging a complaint immediately with the Financial

Ombudsman Service Limited (FOS) or the Credit Ombudsman Service
Limited (COSL). See page 30 for contact details.

XX

If you have a defence against paying the debt, you will also need to file
documents with the court. You should get legal advice before doing this.

You must act immediately to file the necessary documents in the correct
way and within the necessary timeframes. If you dont, a judgment will
generally be entered against you.

What is a defence?
A defence is a legal reason why a debt cannot be enforced by a court.
For example, there are laws that stop debts being collected through
the courts after a certain period of time: see What about old or statutebarred debts? opposite.

Quick tip
You might still be able to negotiate a repayment plan, even if a court
order has been made against you.

18

Dealing with debt

What about old or statute-barred debts?

You may have a defence against a debt if:
XX

a long period of time has passed since you last made a payment or
confirmed the debt in writing.

XX

no court action has been taken to recover the debt in the meantime.

Generally, you can raise this as a defence if 6 years have passed since
you last made a payment or confirmed the debt, and there is no court
judgment against you. In the Northern Territory, the time period is 3 years.
If this is the case, recovery of the debt through the courts is said to be
statute-barred and the courts will not enforce the debt.
If there is no court judgment against you and you make another payment,
the clock will usually start again and normally you will not be able to rely on
this defence anymore.
If you think a debt collector is contacting you about a debt that is statutebarred, you should get legal advice before you make any payment or
confirm the debt in writing.

19

Your legal rights and protections

Debt collectors must act within the law when recovering debts. This means
they must obey laws that are designed to protect you from misconduct.
Under these laws, a debt collector must not:
XX

use physical force or coercion (forcing or compelling you to do

something)

XX

harass or hassle you to an unreasonable extent

XX

mislead or deceive you (or try to do so)

XX

take unfair advantage of any vulnerability, disability or other similar

circumstance affecting you (this is known as unconscionable conduct).

These laws also apply to a debt collectors conduct towards your spouse,
partner, family member or other person connected with you.
Other laws also apply to debt collection. See To find out more on page 27.

Quick tip
While you should not accept misconduct by a debt collector, such
misconduct will not affect whether you are liable for the debt.

20

Dealing with debt

Unacceptable behaviour by
debt collectors
The types of conduct set out below are likely to breach consumer protection
laws, and may breach other laws as well. This is not a complete list.
If you experience any of these behaviours (or other similar misconduct), you
should take action. See To find out more on page 27.

Extreme conduct force, trespass, intimidation

If you are confronted by extreme conduct, report it to the police
immediately.
Debt collectors must not:
XX

use or threaten force of any kind towards you, any member of your family
or any other person connected with you

XX

damage or threaten to damage your property

XX

block access to your property, or block your way

XX

enter your property when you have refused permission, or fail to leave
when you ask them to.

Unreasonable conduct harassment, verbal abuse,

overbearing manner
Debt collectors must not:
XX

shout at you or abuse you, use obscene or racist language or make

personal or demeaning comments (you might also want to report this
conduct to the police)

XX

contact you more frequently than necessary or at unreasonable times

for example, it is unacceptable to keep phoning you without a break or
to contact you late at night or at other unreasonable times as a way of
demoralising or exhausting you (see When, where and why can you be
contacted about a debt? on page 8)

XX

make other persistent contact or unreasonable disturbances.

21

Embarrassing or intimidating you

through other people
Debt collectors must not:
XX

threaten or harass your spouse, partner, family member or any

other person connected with you

XX

make any unauthorised contact with a child under the age of

18 years

XX

talk about your situation to other people (including family

members, neighbours or co-workers) unless you have agreed
to the contact such actions may also breach privacy laws
(see page 30)

XX

engage in conduct that draws peoples attention to your situation

(e.g. send open letters to a shared post-box, leave messages
that others may listen to, make their identity or purpose known
to people you work with again, such actions may also breach
privacy laws).

False or misleading statements and/or conduct

Debt collectors must not:
XX

22

Make false statements about the amount you owe, or the status of your
debt for example:
XX

say you owe a debt when you do not

XX

say the amount you owe is greater than it is

XX

say that you have no choice but to pay a debt if you have a valid
defence against payment, unless there has been a court judgment
(see Disputing a debt on page 13)

XX

say that your spouse or partner must pay your debt when they have
no legal liability to do so (see Are you responsible for someone
elses debt? on page 5)

XX

say that there has been a court judgment if this is not true.

Dealing with debt

XX

Make false statements about what will happen if the debt is not paid, or
what they intend to do for example:
XX

say that unpaid debts are a criminal offence involving the police or
possibly jail (being in debt is not a crime)

XX

say that your children can be taken away from you (this is completely
false)

XX

say that you will be made bankrupt immediately, even though there
has been no court judgment or bankruptcy proceedings started

XX

say that your goods (e.g. your car) will be seized and sold
immediately, even though there is no mortgage over the goods and
no court judgment (if there is a mortgage over the goods, generally
you must be given notice and 30 days to pay first)

XX

say that your wages will be garnished (taken), even though a court
order to allow this has not been obtained

XX

say that your credit rating will be damaged, if that is not true
(privacylaws limit the type of information that a credit reporting
agency can hold on file, how long it can be on file, and who can
access the information).

Debt collectors must not use misleading or

deceptive conduct for example:
XX

send letters demanding payment that are designed

to look like court documents

XX

pretend to be (or pretend to act for) a solicitor, court or

government body.

23

Other unfair or unconscionable conduct

Debt collectors must not:
XX

take unfair advantage of you if you are specially disadvantaged because of

illness, disability, age, illiteracy or other circumstance

XX

take unfair advantage of you if you are ignorant of the law, the debt
recovery process, or the consequences of not paying a debt.

Make a complaint
If you are unreasonably contacted or harassed by a debt collector, you
should make a formal complaint by writing a letter to the debt collection
company. If you are not satisfied with their response, you should take your
complaint to the creditors independent dispute resolution scheme (in the
case of consumer credit) or complain to ASIC or the ACCC (if the debt is
not the result of a loan).

Sample letter
Dear ____________

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Dealing with debt

Opposite is an example of a letter of

complaint about a debt collector that
might help you write your own letter.

(Date)
(Name of debt collector or creditor)
Complaints department
(Debt collector or creditors address)
Dear Sir/Madam,
Re Debt owed to (name of creditor) __________________________
Account No:
I wish to lodge a complaint regarding the debt collection practices of
(name of debt collector or creditor) _________________________.
Provide the details of your experience of harassment
by the debt collector. Include dates, times, events and
names of people involved.
See next page for examples of harassment.

I demand this harassment stop immediately.

If the harassment does not stop I will take further action as
necessary, including making a formal complaint to the Australian
Securities and Investments Commission, the Australian
Competition and Consumer Commission (if the debt is not the
result of a loan), the Office of Fair Trading and your external dispute
resolution scheme.
Finally, I request that all future correspondence in this matter be in
writing.
Yours sincerely,
____________________
(Full name)

25

Examples of harassment
Example 1
A representative of your business (representatives name) has
been ringing me very frequently. During the last 4 weeks I have
been contacted over 30 times by phone. Some of those phone
calls occurred after 9 pm. This is inconsistent with the Australian
Competition and Consumer Commission and the Australian
Securities and Investments Commissions Debt Collection
Guideline4.

Example 2
A representative of your business, (representatives name), rang
my workplace (name of workplace) and spoke to a co-worker of
mine. Your representative asked my co-worker for personal details
about me, including my home address and phone number and
told them how much money I owed you. This embarrassed me
and harmed my professional reputation and is inconsistent with
the Australian Competition and Consumer Commission and the
Australian Securities and Investments Commissions Debt Collection
Guidelines 6 and 7.

Example 3
A representative of your business, (representatives name), rang
me on (date). I was told I owed a debt and if I did not pay the
debt immediately, my possessions would be seized. I dispute
owing the debt. There is no court judgment against me that
would allow my possessions to be seized. This is inconsistent with
the Australian Competition and Consumer Commission and the
Australian Securities and Investments Commissions Debt Collection
Guideline12.

26

Dealing with debt

To find out more

Getting advice from a financial counsellor
Sometimes people need help to:
XX

plan and manage their finances better

XX

negotiate with debt collectors

XX

deal with a debt crisis.

A free and independent financial counselling service may be able to help

you if you are in any of these situations. Financial counsellors will help you
to look at all the options available to you. There are also special services to
help people with gambling problems.
Financial counselling services are available in every state and territory.
Financial Counselling Australia (FCA)
For details of financial counselling organisations around Australia,
visit the FCAs website.
www.financialcounsellingaustralia.org.au
or call the National Financial Counselling Hotline during business hours
on 1800 007 007
For an up-to-date list of financial counselling organisations, you can also go
to ASICs consumer website, MoneySmart.
www.moneysmart.gov.au
or call ASICs Infoline on 1300 300 630 (for the cost of a local call)

27

Getting a copy of your credit report

Your credit report has information about you and your credit history. You
might want to get a copy of your report to check that the information is
accurate and fix any mistakes.
For information about how to get a copy of your credit report from the credit
reporting agency, ask a financial counsellor, visit Financial Counselling
Australias website or ASICs consumer website, MoneySmart.
Financial Counselling Australia
www.financialcounsellingaustralia.org.au
MoneySmart
www.moneysmart.gov.au
or call ASICs Infoline on 1300 300 630 (for the cost of a local call)

Finding out about bankruptcy

For some people in debt crisis, bankruptcy or a Bankruptcy Act agreement
may be an option, although this has serious consequences. A free and
independent financial counselling service can provide information about
bankruptcy and its alternatives. If you are thinking about bankruptcy as an
option, it is very important that you get advice from a free and independent
financial counsellor, or qualified financial adviser.
You can also get information from Insolvency Trustee Service Australia (ITSA).
Insolvency Trustee Service Australia (ITSA)
ITSA is the government body that regulates bankruptcy.
www.itsa.gov.au or phone 1300 364 785

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Dealing with debt

Getting legal advice

Many people who have legal problems because of debt will not be able to
pay for a private solicitor.
Free legal aid and community legal services may be able to help in these
cases. These services are available in every state and territory.
In some courts, chamber magistrates can also give initial advice to people
who have had civil proceedings brought against them.
National Association of Community Legal Centres (NACLC)
Look under CLC Directory on the NACLC website for details of over
160 community legal centres across Australia.
www.naclc.org.au or phone 02 9264 9595
For an up-to-date list of community legal services, you can also look in the
Community Advisory Services section of the Yellow Pages.

Legal aid
Legal Aid Commission (ACT)
www.legalaid.canberra.net.au or phone 02 6243 3471
Legal Aid New South Wales
www.legalaid.nsw.gov.au or phone 02 9219 5000 or 1300 888 529
Victoria Legal Aid
www.legalaid.vic.gov.au or phone 03 9269 0234 or 1800 677 402
Legal Aid Commission of Tasmania
www.legalaid.tas.gov.au or phone 1300 366 611
Legal Aid Western Australia
www.legalaid.wa.gov.au or phone 1300 650 579
Legal Services Commission of South Australia
www.lsc.sa.gov.au or phone 08 8463 3555 or 1300 366 424
Northern Territory Legal Aid Commission
www.ntlac.nt.gov.au or phone 1800 019 343
Legal Aid Queensland
www.legalaid.qld.gov.au or phone 1300 651 188

29

Finding out about your privacy rights

Debt collectors must protect your personal information and the
personal information of third parties. The Office of the Privacy
Commissioner (Federal) looks after these laws.
Office of the Privacy Commissioner
www.privacy.gov.au or phone 1300 363 992

Making a complaint
You can complain to an independent dispute resolution scheme if you have
a disagreement about a debt with a member of the scheme. You will also
be able to complain to a dispute resolution scheme if legal proceedings
relating to debt recovery have been brought against you and you have not
taken a step beyond lodging a defence (or defence and counterclaim).
These schemes are available to consumers free of charge, and scheme
members must comply with their decisions.

Banking, credit and finance

Financial Ombudsman Service Limited
www.fos.org.au or phone 1300 780 808
Credit Ombudsman Service Limited
www.cosl.com.au or phone 1800 138 422

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Dealing with debt

Energy, water and telecommunications

Australia-wide Telecommunications Industry Ombudsman
www.tio.com.au or phone 1800 062 058
ACT Essential Services Consumer Council
Phone 02 6207 7740
Energy Ombudsman Queensland
www.eoq.com.au or phone 1800 662 837
Energy and Water Ombudsman New South Wales
www.ewon.com.au or phone 1800 246 545
Ombudsman for the Northern Territory
www.nt.gov.au/omb_hcscc/ombudsman or phone 1800 806 380
Energy Industry Ombudsman South Australia
www.eiosa.com.au or phone 1800 665 565
Energy Ombudsman Tasmania
www.energyombudsman.tas.gov.au or phone 1800 001 170
Energy and Water Ombudsman (Victoria)
www.ewov.com.au or phone 1800 500 509
Energy Ombudsman Western Australia
www.ombudsman.wa.gov.au/energy or phone 1800 754 004

31

Contacting state and territory

consumer affairs agencies
State and territory consumer affairs or fair trading agencies look after
fair trading laws, which include similar prohibitions to Commonwealth
consumer protection laws.
State and territory consumer affairs agencies license or register
independent debt collection agents. You can complain to your state or
territory consumer affairs agency about harassment.

Offices of fair trading and consumer affairs

ACT Office of Regulatory Services
www.ors.act.gov.au or phone 02 6207 0400
NSW Fair Trading
www.fairtrading.nsw.gov.au or phone 13 32 20
Consumer Affairs Victoria
www.consumer.vic.gov.au or phone 1300 558 181
Tas Consumer Affairs and Fair Trading
www.consumer.tas.gov.au or phone 1300 654 499
WA Department of Commerce
www.commerce.wa.gov.au or phone 1300 304 054
SA Office of Consumer and Business Affairs
www.ocba.sa.gov.au or phone 08 8204 9777
NT Consumer Affairs
www.consumeraffairs.nt.gov.au or phone 1800 019 319
Qld Department of Employment, Economic Development and
Innovation, Office of Fair Trading
www.fairtrading.qld.gov.au or phone 13 13 04

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Complaining about harassment or

misconduct by debt collectors
The ACCC and ASIC look after the Commonwealth laws that protect
people from undue harassment and other illegal debt collection conduct.
You may want to discuss concerns about misconduct directly with the debt
collector. Tell them you believe their conduct is unacceptable and refer
them to this brochure, or to the Debt collection guideline: for collectors
and creditors produced by the ACCC and ASIC.
You should report harassment that is serious and/or ongoing to the
ACCC or ASIC, or to the consumer affairs or fair trading agency in your
state or territory (see opposite page).
Conduct involving assault or threats of violence should be reported to
the police.
The consumer protection responsibilities of the ACCC and ASIC are
outlined below. For more information, see our joint brochure Complaints
about debt collection activity the responsibilities of Commonwealth
agencies, available on either the ACCC or ASIC websites.
Australian Competition and Consumer Commission
The ACCC is the general consumer protection regulator.
If your debt relates to goods and services generally, other than financial
services (for example, phone or utility bills and debts to tradespeople or
service providers), contact the ACCC.
Website
www.accc.gov.au
ACCC Infocentre
1300 302 502
Written complaints GPO Box 3131
Canberra ACT 2601
Australian Securities and Investments Commission
ASIC is the financial services regulator. If your debt relates to a loan or
credit card (or another financial service), contact ASIC.
Website

www.moneysmart.gov.au

This website also provides general information about managing your

money, loans and credit, and other financial matters.
ASIC Infoline
1300 300 630
Written complaints ASIC Complaints
PO Box 9149 Traralgon VIC 3844

33

Notes

34

Dealing with debt

35

The MoneySmart website has calculators, tools and tips to help you make
smart choices about:
XX

Borrowing and credit

XX

Budgeting and saving

XX

Scams

XX

Superannuation and retirement

XX

Investing

Visit www.moneysmart.gov.au.

Contact the Australian Competition and Consumer Commission by visiting

www.accc.gov.au or by phoning 1300 302 502.

www.moneysmart.gov.au
ASIC Infoline: 1300 300 630
Disclaimer
Please note that this is a summary giving you basic information about a particular topic. It does not
cover the whole of the relevant law regarding that topic, and it is not a substitute for professional advice.
Australian Securities and Investments Commission 2011
ISBN 978-0-9803719-6-3 | October 2011