How to Verify Debt and Stop Harassment in Australia

What laws protect you from debt collector harassment in Australia?

Harassment, coercion and misleading or deceptive conduct by debt collectors are unlawful in Australia. Collectors must follow the ACCC-ASIC Debt collection guideline, the Australian Consumer Law, the ASIC Act, the Privacy Act and, for consumer credit, the National Credit Code.

• Key laws and regulators:
  • Australian Consumer Law (ACL), Competition and Consumer Act 2010 - bans undue harassment, coercion and misleading conduct in debt collection. Enforced by the ACCC and state fair trading agencies.
  • ASIC Act 2001 - similar conduct bans for financial services and consumer credit. Enforced by ASIC.
  • National Consumer Credit Protection Act 2009 and National Credit Code - sets rules for consumer credit contracts, hardship, default notices and statements. Overseen by ASIC and AFCA for disputes.
  • Privacy Act 1988 and the Credit Reporting Privacy Code - controls disclosure of your personal information and credit reporting, enforced by OAIC.
  • Bankruptcy Act 1966 - governs bankruptcy processes, with AFSA as the authority.
• Prohibited conduct includes:
  • Excessive or threatening contacts, contacting you at unreasonable times or at work after you ask them not to.
  • Discussing your debt with third parties without your permission.
  • Misrepresenting legal status, fees, or consequences, or adding unlawful charges.
  • Continuing collection while a genuine dispute is under investigation or while an AFCA complaint is open.

How can you stop debt collector harassment immediately?

Tell the collector how and when they can contact you, or require them to speak only to your representative. Put it in writing and keep proof; once notified, they must comply except for limited legal notices.

1. Set your contact boundaries in writing:
   • State you prefer contact by email or letter only, or that all contact must go to your representative (financial counsellor or lawyer).
   • If calls at work risk your employment or you do not consent, direct them not to call you at work.
2. Use a short cease-harassment request:
   • Copy and adapt:
     "I do not consent to phone calls. Please contact me only in writing at [email/email address]. If you believe I owe a debt, provide verification and a full breakdown. I dispute the amount and require you to pause collection while you investigate."
3. Escalate if they ignore you:
   • Complain to AFCA if it is a financial firm or licensed debt collector. Lodge with ACCC or ASIC for misconduct and OAIC for privacy breaches.
   • Once an AFCA complaint is lodged, the firm must stop collections and legal action on the subject matter of the complaint until resolved.
4. Get free support:
   • Call the National Debt Helpline on 1800 007 007 for a free financial counsellor to act as your representative.

How do you verify a debt before paying?

Ask for documentary proof that you owe the debt and that the amount is accurate. Do not pay until you receive and check copies of the contract, statements and calculation of the balance.

1. Send a written request for verification:
   • Ask for:
     • Copy of the original contract or service agreement and terms.
     • Itemised statements showing all charges, interest and payments.
     • Calculation of the current balance and any fees added.
     • If the debt was sold, the assignment or notice of assignment and the chain of title.
     • The collector's legal name, ABN/ACN, Australian Credit Licence number if applicable, and a physical address.
   • State that the debt is disputed and require collection to be paused while they investigate.
2. Check for red flags:
   • No documents provided, pressure to pay immediately, requests for unusual payment methods or mismatched amounts or dates.
   • For consumer credit, lenders must keep and provide certain records and statements. If they cannot produce them, that weakens the claim.
3. Match to your records:
   • Cross-check contracts, emails, invoices and bank statements.
   • Order your free credit report from Equifax, illion or Experian to see what is listed.
4. If documents do not stack up:
   • Write back explaining the inconsistencies and maintain your dispute.
   • Lodge an internal dispute with the firm and then AFCA or the relevant Ombudsman if unresolved.

What contact limits and hours apply to debt collectors?

Collectors must keep contact reasonable. As a practical guide from the ACCC-ASIC guideline, contact should not exceed 3 times per week or 10 per month, and should only occur 7:30am-9pm Monday-Friday, 9am-9pm weekends, and never on national public holidays.

• Reasonable contact:
  • Try other channels before repeating calls. Allow time for you to respond.
  • One face-to-face visit per month at most, only if genuinely necessary and safe.
• Where and how:
  • No contact at your workplace if you ask them not to, or if it risks your employment or privacy.
  • No disclosure to family, friends or colleagues. Limited one-off contact to locate you is allowed without revealing the debt.
  • Voicemail or messages must not reveal sensitive debt details.
• Do Not Call Register:
  • Debt collection calls are generally exempt from the DNCR if related to an existing debt, but collectors must still follow the above limits and not harass.

When is a debt too old to sue for in Australia?

Most unsecured consumer debts become statute-barred if there has been no payment or written acknowledgment for 6 years, or 3 years in the Northern Territory. Once statute-barred, collectors cannot sue you, though they may ask you to pay if they do not mislead or harass.

• What to do if you suspect a statute-barred debt:
  • Do not pay or acknowledge in writing until you confirm the dates.
  • Write: "I do not admit liability. If you believe the limitation period has not expired, provide your calculation of the limitation date with supporting documents."
  • Statute-barred debts should not be listed as new defaults with credit reporting bodies.

What if a collector threatens court, default listing or bankruptcy?

Threats must match the collector's real legal position. They cannot threaten actions they are not prepared or entitled to take, and certain steps have strict prerequisites and timelines.

• Court claims:
  • For consumer credit, a default notice giving at least 30 days to remedy is usually required before court.
  • If you receive a Statement of Claim, act immediately: file a defence within the deadline on the court form, or you risk default judgment.
• Credit reporting default listings:
  • For consumer credit, a default can be listed only if at least 60 days overdue and at least about $150, with prior written notice. The listing must be removed if incorrect.
  • You can dispute a default in writing with the credit provider and the credit reporting body. If unresolved, escalate to AFCA or OAIC.
• Bankruptcy:
  • You cannot be made bankrupt without a court order. A creditor must have a judgment debt and serve a bankruptcy notice.
  • Minimum debt for a bankruptcy notice is $10,000. You generally have 21 days from service to comply or apply to set aside.
  • Contact AFSA or a lawyer immediately if you receive a bankruptcy notice.

How do you complain about a debt collector in Australia?

Start with the firm's internal dispute resolution, then lodge with the correct external ombudsman. Collections must pause while AFCA or the relevant Ombudsman handles your complaint.

1. Write to the firm:
   • Mark your letter "Complaint," set out the facts, attach evidence and say what you want done.
   • Ask for a written response within their IDR timeframes.
2. Escalate externally if needed:
   • Use the table below to pick the right body. Lodging is free and online.

How can you negotiate, request hardship or set up a payment plan?

If you owe the debt, negotiate a repayment plan you can afford or request hardship assistance. Credit providers must genuinely consider hardship notices and respond within set timeframes.

1. Work out a realistic budget:
   • List income and essential expenses. Decide what you can pay each week or month without missing essentials.
2. Choose an option:
   • Hardship request for temporary reduction, deferral or variation of terms for consumer credit.
   • Payment plan with no or reduced interest on other debts.
   • Settlement discount for a lump-sum payment in exchange for finalising the account and removing collection activity.
3. Put it in writing:
   • Ask them to confirm any agreement in writing before you pay. Keep copies of all communications.
   • For consumer credit hardship, provide basic evidence of financial difficulty and propose what you can afford.
4. If they say no:
   • Escalate to IDR and then AFCA. While AFCA considers hardship complaints, collection must pause.
   • Seek help from a financial counsellor via the National Debt Helpline.

What are your privacy and credit reporting rights with collectors?

Collectors must protect your privacy and follow strict rules before listing defaults on your credit report. You can access and correct your data and require errors to be fixed.

• Privacy:
  • No disclosure of your debt to others without consent or legal basis.
  • You can request access to the information they hold and ask for corrections.
  • Complain to OAIC if your information was mishandled.
• Credit reporting:
  • Default listings require you to be at least 60 days overdue and above a minimum amount, with prior notice sent to your last known address.
  • They must not list statute-barred debts as new defaults or list debts you do not owe.
  • You can get a free credit report every 3 months and after adverse credit decisions. Dispute any inaccuracies with both the credit provider and the credit reporting body.

What does it cost and how long do complaint paths take?

Most complaint options are free and require the collector to pause activity. Timelines vary from days to a few months depending on complexity and the forum.

What are the exact steps to handle a debt collector from first contact?

Confirm who is contacting you, set communication rules, request verification and dispute anything inaccurate. Escalate to complaints bodies if needed and consider hardship or a plan only after verification.

1. Verify the caller:
   • Ask for their full name, company, ABN/ACN, phone number, reference number and the original creditor.
   • Do not provide personal information until you are sure who they are.
2. Control communication:
   • Say you want everything in writing and provide an email or postal address.
   • If you feel unsafe or overwhelmed, appoint a representative and give their details.
3. Request verification in writing:
   • Ask for the contract, statements and calculation of the balance. State that you dispute until verified.
4. Check limitation period:
   • If the last payment or acknowledgment is older than your state's period, raise statute-barred status.
5. If verified and you owe it:
   • Propose a realistic plan or hardship. Get agreements in writing. Keep paying essentials first.
6. If not verified or conduct is unlawful:
   • Complain to IDR then AFCA or the relevant Ombudsman. Collections must pause at AFCA.
   • Report serious misconduct to ACCC/ASIC and privacy breaches to OAIC.

What common mistakes should you avoid?

Do not pay or admit a debt before you see proof and do not restart limitation periods by accident. Avoid agreeing to unaffordable plans or ignoring court documents.

• Paying or acknowledging in writing before verifying, which can restart the limitation period.
• Agreeing to payments you cannot sustain, causing immediate default and more pressure.
• Ignoring a Statement of Claim, bankruptcy notice or court documents. Always respond on time.
• Sharing too much personal data before verifying the collector's identity.
• Not keeping records. Keep a log of every contact, save emails and letters and note dates and times.

When should you hire a lawyer or expert?

Get expert help if you receive court documents or a bankruptcy notice, if the debt is complex or disputed, or if harassment continues after you assert your rights. A letter from a lawyer or a financial counsellor often stops misconduct quickly.

• Hire a lawyer if:
  • You are served with a Statement of Claim, garnishee order or bankruptcy notice.
  • The amount or liability is disputed with complex facts or multiple parties.
  • You need urgent relief such as an injunction against harassment.
• Use a financial counsellor if:
  • You need help with budgets, hardship applications and negotiation. This service is free via the National Debt Helpline.
  • You want someone to be your point of contact with collectors.
• Consider specialist credit reporting help if:
  • You have incorrect defaults or mixed files. Start with free dispute channels before paying any third party.

What are your next steps today?

Put your communication rules in writing, ask for verification and get support if you feel overwhelmed. If the collector breaches the rules, escalate promptly to the right Ombudsman or regulator.

1. Send a short email or letter to the collector:
   • "Contact me only in writing. I dispute this debt and request verification including the contract, statements and calculation. Pause collection while you investigate."
2. Start a contact log:
   • Record dates, times, who called, what was said and any threats. Save voicemails and screenshots.
3. Order your free credit report from Equifax, illion and Experian and note any listings to dispute.
4. Call the National Debt Helpline on 1800 007 007 to speak with a financial counsellor.
5. If misconduct occurs or proof is not provided, lodge a complaint with AFCA or the relevant Ombudsman. Tell the collector the complaint number and require collections to pause.
6. If you receive court or bankruptcy documents, contact a lawyer immediately and diarise the deadline on the form.