A debt collector may contact you if you have overdue repayments for a loan, credit card, utility bill or other type of debt. Usually, the bank or account provider will contact you about repayments first. But if that doesn't work they may pass your details on to a debt collector.
While dealing with an overdue debt can be overwhelming, it’s easier to manage when you understand the process and your rights.
Need help now? You can call the National Debt Helpline on 1800 007 007 to speak to a financial counsellor for free, or visit the website for online chat support and other resources.
When will a debt collector contact me?
If a lender has contacted you about an overdue debt and you haven't responded or made any repayment, it may refer the account to an independent debt collection agency.
Keep in mind that debt collectors are usually seen as a last resort for accounts that are overdue or "in default" – which can happen if you haven't made a payment for at least 60 days and owe $150 or more.
If you're struggling to pay a bill and are worried it may be given to a debt collector, contact the provider and let them know what's going on. It could offer you hardship support and/or a payment plan to help you clear the debt without involving third-party debt collectors at all.
How will debt collectors contact me?
The most common way for debt collectors to contact you is by phone, either on your given landline or mobile number. However, they can also contact you by letter, in person or online through email or even via social media.
How does a debt collector get my phone number or other contact details?
When a provider sells or passes your debt on to a collection agency, it gives the debt collector your account information. This usually includes contact details such as your phone number, email address and street or postal address.
A debt collector could also use the name on your account to search for you online.
When can a debt collector contact me?
The Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) have outlined a set of debt collection guidelines for creditors, debt collectors and people in debt. We’ve summarised these recommendations in the table below:
Type of contact
Times
Contact recommendations
Phone
Monday to Friday: 7:30am to 9pm
Weekends: 9am to 9pm
You could be contacted up to 3 times per week or 10 times per month in total
Other (letters, emails, social media etc)
No specific hours listed
You could be contacted up to 3 times per week or 10 times per month in total
Workplace contact
9am to 5pm on weekdays or your normal work hours (if known)
You could be contacted up to 3 times per week or 10 times per month in total
In person
Weekdays and weekends: 9am to 9pm
Debt collectors should limit in-person contact to once per month and only when there is no other way to contact someone
Debt collectors are advised to respect any reasonable requests you have for contact within specific hours, based on your circumstances. If you think a debt collector is contacting you too often, or not giving you an opportunity to respond, contact the company to complain or make a consumer complaint with the ACCC.
Debt collectors and privacy
As well as recommendations around how often a debt collector can contact you, there are also regulations and requirements that help protect your right to privacy. For example, a debt collector is not allowed to give anyone else details about your financial situation or to reveal that they are a debt collector unless you give them permission to do so.
This means if a debt collector contacts you at home or work and you’re not there, they can’t tell anyone else about the situation. Similarly, if they contact you online, they have to be reasonably sure that no one else will see the information. If you think a debt collector has breached privacy laws, contact the Office of the Privacy Commissioner.
What can I do when debt collectors get involved?
If a debt collector contacts you, aim to respond to them as soon as possible so that you can deal with the overdue account. Depending on your circumstances, you may be able to consider some of the following options:
Keep a record of the contact. Take note of when a debt collector has contacted you and what they said. This will help protect your right to privacy and may be used as evidence if you have to lodge a complaint.
Explain your situation. Let the debt collector know why you haven’t made a payment. If you’re experiencing financial hardship, they may be able to offer you a payment plan without taking further action.
Work out how much you can afford to pay. Debt collectors may suggest a repayment plan for you based on the amount that you owe. When that’s the case, make sure you can afford the repayments based on your current circumstances. If you can’t, suggest a repayment amount that would be reasonable for you or ask about other options.
Request a hardship variation. This is a formal request for a variation in the terms of your loan or account. For example, you could request smaller repayments over a longer period of time, postponement of payments for a fixed amount of time or a combination of both these options. You’ll need to submit your request in writing and the credit provider must respond within 21 days.
Get professional advice. If you’re unsure of how to deal with your debt, contact the National Debt Helpline on 1800 007 007 to speak to a financial counsellor for free.
When will a debt collector stop contacting me?
Ignoring a debt collector won't make them go away. But some of the reasons they may stop or reduce contact with you include:
If you acknowledge that you owe the debt and agree to repay it (or enter into a repayment plan)
If the debt is not yours or is a case of fraud and you have sought legal action or a dispute
If the debt is more than 6 years old
If you are bankrupt and the debt is unsecured
For most debts in Australia, the debt collector or creditor can take legal action within 6 years from the date of your last payment, or from when you acknowledged in writing that you owed the debt (whichever is later).
But there are a few situations where they may have up to 15 years to collect the debt. For example, if court action was started for a mortgage on a property, the debt collector would have 6 years from that date to claim interest costs and 12 years to recover the principal amount borrowed.
What if I am contacted about a debt that's not right?
If a debt collector has contacted you about a debt that you don’t think is yours, or if the amount of debt seems wrong, ask for a copy of your account information and contract. Check these details against your own and then contact the provider to dispute the debt.
If necessary, provide copies of any additional details, such as payments you’ve made that aren’t recorded on your account. If the situation still isn’t resolved, you can also get free legal advice through the Community Legal Centres Australia.
Dealing with overdue debts can be overwhelming, but there are many ways to get back on track. So now that you know how the process works, you can take steps to deal with your repayments in a way that works for you.
Amy Bradney-George is the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 14 years’ experience as a journalist, with a particular focus on personal finance, and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald.
For anyone who has paid for a taxi or booked a flight with their credit card and walked away feeling robbed: here's the latest news on credit card interchange fees.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan and read any disclosure documents (such as any Target Market Determination (TMD) and/or Product Disclosure Statement (PDS)) issued by the provider before making a decision.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
