Your credit report has information about you and your credit history. You should retrieve a copy of your credit report to check that the information is correct.
Credit reports can be ordered through My Credit File or Veda Advantage.
Getting a copy of your credit report
What about old or statute-barred debts?
You may have a defence against a debt if:
- Long period of time has passed (usually 6 six years but it may be different depending on which state you live); and
- No court action has been taken.
Debt collectors must act within the law when recovering debts. They cannot:
- Use physical force;
- Harass or threaten you;
- Mislead or deceive you; or
- Take advantage of your disability or vulnerability.
Disputing a debt
If you have been contacted regarding a debt you don’t believe is yours you have a right to dispute the debt or the amount of the debt.
When you make a reasonable request, debt collectors should be prepared to give you account information and copies of contracts.
I thought I settled that debt
Be aware a debt collector may contact you for a debt you may have paid in full. In this case explain to the creditor you have paid this debt and offer supporting documents to prove payment has been made.
When Negotiating a repayment plan
Creditors will often agree to an extended period for repayment if you are struggling to make a payment.
You may be able to negotiate a lump sum full and final offer with the creditor.
When you are offering a payment plan please much sure the repayment is sustainable given your budget as expenses may increase in the future.
Record keeping
It is important to keep good personal records.
Remember the following tips:
- Keep all your receipts or other records of payment and copies of any letters you send to any debt collector or creditor.
- Keep all your records together to avoid losing anything.
- A debt collector should not visit you at your workplace unless you request them too.
A debt collection agency can:
A creditor or debt collector can only make 3 phone calls or letters per week.
Phone or personal contact can only be between the hours of 7:30 am 9:00 pm on weekdays.
No contact allowed on national public holidays.
A debt collector is a person who collects debts.
A debt collector must be co-operative and is obliged to treat you in a professional manner.
If you can reach an affordable arrangement with a debt collector:
- Ask for it to be confirmed in writing.
- Make an effort to sustain the repayment.
When and where can you be contacted about a debt?
A debt collection agency may only contact you when they have a good reason to call.
A good reason could be:
- Wanting you to make a payment that is due;
- Making arrangements for payment;
- Enquiring as to why a payment has not been made;
- Reviewing an existing payment plan; or
- Recovering secured goods.
Are you in debt?
If you have borrowed money, you have a legal responsibility to repay the money you owe.
Don’t avoid your responsibility to repay your debts. Are you responsible for someone else debt? You are not legally responsible for paying another persons debt.
You may be legally responsible for other peoples debts by agreeing to be guarantor for a loan.
It is very important to understand the consequences of entering into a loan agreement as a co-borrower as both parties are responsible for repayments.
- ITSA Registered Debt Agreement Administrator
Debt Free is a Registered Debt Agreement Administrator (Reg. No. 1098) and is regularly inspected by ITSA. Australian Credit Licence No: 392282
