Consumers allege harassment by debt collectors
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.