Debt buyers code of practice

The Australian Collectors & Debt Buyers Association has published an industry code of practice, setting out best practice requirements for member companies that buy and collect consumer debt.

One of the objectives of the Code is to improve consumer and stakeholder confidence in ACDBA members and the debt collections industry generally. Compliance with Code is a compulsory obligation of ACDBA membership.

Commitments by members include:

“We will act fairly and reasonably towards You in a legal, equitable and transparent manner, taking into account Your conduct, Our conduct and Our respective rights and obligations
We will not engage in practices which are aggressive, deceptive, deceitful, oppressive or improper, whether lawful or not
We will not imply an intention to proceed with litigation or insolvency proceedings against You if such action is not possible, intended or being considered
We will comply with all relevant laws and best practice guidelines relating to the Australian Collections industry including the ACCC/ASIC Debt collection guideline and updates thereto
We will not act in a manner intended to publicly embarrass You or cause You distress”.

The code deals with financial hardship by debtors and complaints.

When a member has assumed the responsibilities of the original credit provider as a debt buyer, it must provide a debtor with provide details of its mandatory EDR scheme.

The Code has not been registered with ASIC.

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