- Debtors sue over collector calls
- 19/01/2012 Make a Comment
- Contributed by: Rosco ( 1 article in 2012 )
TWO women who say debt collectors ignored their requests that they be left alone are taking landmark legal action.
A law introduced last year requires debt collectors to stop contacting a debtor once asked in writing to do so, unless legal action is taken.
The two agencies are said to have continued to contact the two Melbourne women after receiving written requests that they either stop contacting them or take legal action.
The Consumer Action Law Centre is bringing the cases in the Victorian Civil and Administrative Tribunal, on behalf of the women.
The agencies involved are Australian Receivables Limited and Baycorp Collections.
CALC policy manager Gerard Brody said the cases would test the new law.
"What we find is that debt collectors just harass clients, continually call them ... but they're not actually taking steps to enforce the debt. So it's just, to us, that they want to harass them," Mr Brody said.
Baycorp Collections, chasing three debts totalling $2516, has been accused of "undue harassment" in calling more than 10 times after receiving a written request to desist.
Australian Receivables Limited, chasing two debts worth $594, is accused of contacting a woman more than nine times after it was sent a letter.
Neither agency had gone to court to recover the money.
Financial counsellor Lyn White said she constantly saw people harassed by debt collectors who in some cases called up to eight times a day.
"That's part of the stress and angst - people ringing up at all times of the day, constantly requesting payments," Ms White said.
Companies continued to contact debtors even after counsellors had sent requests to stop. Many calls came from overseas call centres, where staff might not know the law.
"If you're going to work for a company, you should know all those rights and obligations," she said.
Source:
https://www.news.com.au/finance/money/debtors-sue-over-collector-calls/story-e6frfmd9-1226247950081
* * * * * * * * * * * * * *
Prohibitions on certain debt collection practices that were incorporated into the Victorian Fair Trading Act last year will be tested in cases being brought against Australian Receivables Ltd and Baycorp Collections.
The Consumer Action Law Centre is representing two clients in cases before the Victorian Civil and Administrative Tribunal.
Amendments to the Victorian Fair Trading Act prohibit debt collectors from engaging in the following practices: entering or threatening to enter a private residence without lawful authority; using a threat, deception or misrepresentation to obtain consent to enter a private residence; and refusing to leave a private residence or workplace when asked to do so.
Under the amendments, debt collectors are also banned from exposing or threatening to expose a person or a member of that person’s family to ridicule or intimidation.
They cannot impersonate a government employee or agent, attempt or threaten to possess any property to which they are not entitled, or contact a person by a method that person has asked not to be used (such as calling their workplace).
Debt collectors must stop contacting a person about a debt after they have been advised in writing that no further communication should be made about that debt, unless the contact is by way of legal action or threat of legal action.
Communicating with a person in a manner that is unreasonable in its frequency, nature or content is also prohibited.
Consumer Action co-chief executive Carolyn Bond said her group had received "an alarming number" of complaints from consumers and financial counsellors alleging that debt collectors were ignoring requests to cease contact.
Bond said: "The law allows consumer to say: 'Don’t contact me anymore. Either sue me or leave me alone.' We don’t want people being hounded forever."
In the case being brought against Australian Receivables Ltd, Consumer Action’s client alleges she was contacted on at least nine occasions after she made a written request for ARL to stop.
The case against Baycorp Collections alleges undue harassment from at least 10 calls made after a request to stop making contact.
Source:
https://www.bankingday.com/nl06_news_selected.php?selkey=12679
A law introduced last year requires debt collectors to stop contacting a debtor once asked in writing to do so, unless legal action is taken.
The two agencies are said to have continued to contact the two Melbourne women after receiving written requests that they either stop contacting them or take legal action.
The Consumer Action Law Centre is bringing the cases in the Victorian Civil and Administrative Tribunal, on behalf of the women.
The agencies involved are Australian Receivables Limited and Baycorp Collections.
CALC policy manager Gerard Brody said the cases would test the new law.
"What we find is that debt collectors just harass clients, continually call them ... but they're not actually taking steps to enforce the debt. So it's just, to us, that they want to harass them," Mr Brody said.
Baycorp Collections, chasing three debts totalling $2516, has been accused of "undue harassment" in calling more than 10 times after receiving a written request to desist.
Australian Receivables Limited, chasing two debts worth $594, is accused of contacting a woman more than nine times after it was sent a letter.
Neither agency had gone to court to recover the money.
Financial counsellor Lyn White said she constantly saw people harassed by debt collectors who in some cases called up to eight times a day.
"That's part of the stress and angst - people ringing up at all times of the day, constantly requesting payments," Ms White said.
Companies continued to contact debtors even after counsellors had sent requests to stop. Many calls came from overseas call centres, where staff might not know the law.
"If you're going to work for a company, you should know all those rights and obligations," she said.
Source:
https://www.news.com.au/finance/money/debtors-sue-over-collector-calls/story-e6frfmd9-1226247950081
* * * * * * * * * * * * * *
Prohibitions on certain debt collection practices that were incorporated into the Victorian Fair Trading Act last year will be tested in cases being brought against Australian Receivables Ltd and Baycorp Collections.
The Consumer Action Law Centre is representing two clients in cases before the Victorian Civil and Administrative Tribunal.
Amendments to the Victorian Fair Trading Act prohibit debt collectors from engaging in the following practices: entering or threatening to enter a private residence without lawful authority; using a threat, deception or misrepresentation to obtain consent to enter a private residence; and refusing to leave a private residence or workplace when asked to do so.
Under the amendments, debt collectors are also banned from exposing or threatening to expose a person or a member of that person’s family to ridicule or intimidation.
They cannot impersonate a government employee or agent, attempt or threaten to possess any property to which they are not entitled, or contact a person by a method that person has asked not to be used (such as calling their workplace).
Debt collectors must stop contacting a person about a debt after they have been advised in writing that no further communication should be made about that debt, unless the contact is by way of legal action or threat of legal action.
Communicating with a person in a manner that is unreasonable in its frequency, nature or content is also prohibited.
Consumer Action co-chief executive Carolyn Bond said her group had received "an alarming number" of complaints from consumers and financial counsellors alleging that debt collectors were ignoring requests to cease contact.
Bond said: "The law allows consumer to say: 'Don’t contact me anymore. Either sue me or leave me alone.' We don’t want people being hounded forever."
In the case being brought against Australian Receivables Ltd, Consumer Action’s client alleges she was contacted on at least nine occasions after she made a written request for ARL to stop.
The case against Baycorp Collections alleges undue harassment from at least 10 calls made after a request to stop making contact.
Source:
https://www.bankingday.com/nl06_news_selected.php?selkey=12679
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