The Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) have issued a brochure outlining their roles in regulating debt collection activities.

Both ASIC and the ACCC oversee laws which protect consumers from inappropriate behaviour by a debt collector.

‘Debt collectors must not use physical force, undue harassment or coercion when collecting debts. They must also ensure that their conduct does not mislead or deceive consumers or take unconscionable advantage of them’, ASIC’s Executive Director Consumer Protection and International Relations, Mr Greg Tanzer, said.

The new brochure sets out the role of each agency in debt collection:

ASIC deals with debt collection complaints relating to a financial service. This includes debts on credit card accounts, personal or home loans, finance provided by a finance company for items such as a car or household goods, as well as fees for the provision of financial advice; the ACCC deals with debt collection complaints relating to goods and non-financial services. This includes debts for telephone services or other utilities, and for the services of tradespeople and professionals, where immediate payment is not required.

The above arrangements also apply when a debt is ‘assigned’ or sold to a third party, such as a debt buy-out company.

In addition to ASIC and the ACCC, complaints regarding debt collection can also be lodged with state or territory government consumer affairs or fair trading agencies, or an industry dispute resolution scheme (for example, the Banking and Financial Services Ombudsman, if the debt collector is a member of the scheme).