You’ve got yourself into some debt and now find yourself having to deal with debt collectors. Don’t worry, you’re not alone and we understand how intimidating it can be.
That’s why we are here to share some tips with you, to help you feel a little more confident when dealing with debt collectors. So, what do you do when a debt collector contacts you? How do you deal with them? And most importantly, what are your rights and responsibilities?
A debt collector has contacted me – What do I do?
If you fall behind on your loan, credit card, or a bill and don’t communicate with the service provider or respond to them, a debt collector may contact you.
The debt collector could be the original credit or service provider collecting the debt themselves or a debt collection agency acting on the creditor’s behalf.
Here’s what you should do:
- Be polite, professional, and cooperative
- Be honest about your financial position and disclose any other debts
- Return calls and respond to any correspondence promptly
- Agree to a repayment arrangement (if you can afford it)
- Inform the debt collector, should your contact information change
All these little tips are likely to make the whole process a little smoother for you.
How and when can a debt collector contact me?
A debt collector can contact you via one or all the following methods:
Phone
A debt collector can call you:
- No more than 3 times per week
- On weekdays between 7.30am and 9.00pm
- On weekends between 9.00am and 9.00pm
Social media and email
Should a debt collector choose to communicate with you via social media or email, they should be somewhat sure that a third party is not able to view such confidential information.
Face to face
Although there is no requirement for a debt collector to visit you face to face, some debt collectors will, and are authorized to, provided they follow the below guidelines.
A debt collector must:
- Not visit more than once a month
- Only visit on weekends between 9.00am and 9.00pm
- Leave immediately if asked
- Treat you, your family and any third parties with courtesy and respect
- Not talk to your child (under the age of 18)
- Not embarrass, or distress you or a third party
It is advisable to keep a record of all communication with a debt collector, as you never know when or if, you will need this in the future.
What reasons does a debt collector need to contact me?
When a debt collector contacts you, they must have a good reason and should only contact you when and if necessary.
- Account information
A debt collector is authorised to contact you to provide you with information on your account, or to make a demand for a payment on your account.
- Request an explanation
If you have not responded to a contact attempt, or kept to an agreed payment plan, a debt collector can contact you to request an explanation.
- Explain consequences
A debt collector is authorised to contact you to explain the consequences of non-payment as well as any restrictions to utilities or services, which may come into effect as a result.
- Mortgaged goods
Should your personal situation require it, a debt collector is authorised to contact you regarding inspection or recovery of mortgaged goods.
If a debt collector is contacting you for any other reasons, then you have the right to question this and lodge a complaint.
Although you have an outstanding debt and may be feeling embarrassed at this time, it’s important to remember that you have absolutely every right to be treated with courtesy, respect and professionalism by a debt collector, or debt collection agency.
Should you feel you are being mistreated, abused, or harassed and that you may be dealing with a debt collector displaying misconduct, it is important to talk to someone about it, and make a complaint.
We hope these tips have provided you with more of an insight on your rights and responsibilities and the correct conduct of a debt collector.
At Life After Debt® we have offices in Perth and Sydney; we can help you reduce unmanageable debt by assessing affordable, practical debt solutions once lending is not longer available to you. We do not lend money nor are we a broker, so we will never try to ‘sell you’ financial products.
Contact us today to receive honest and sympathetic advice, without judgement.
