Lenders and debt collectors will have to revise their operating procedures to take account of changes to the Privacy Act that take effect next March. The Australian Competition and Consumer Commission and the Australian Securities and Investments Commission have issued new debt collection guidelines. Under the privacy laws, a creditor or debt collector must protect the privacy of the debtor. This means that when making direct contact, the creditor or debt collector must make sure it is dealing with the debtor.These privacy restrictions apply to all third parties, including a debtor's business partners, spouse or other family members. The draft recommends against visits to a person's home without permission, as this may raise privacy issues. It says visits to a debtor's workplace should only be a last resort.Another change under the updated privacy laws is a requirement for debt collectors to gather personal information about the debtor only from that individual, unless the collector can show it is unreasonable or impractical to do so.ASIC and the ACCC have broadened the scope of their advice to cover new communications technologies. Creditors and debt collectors should consider the potential audience of a given technology to establish a "reasonable belief" that the contact will be with the debtor only and will not be shared by other parties (which is a risk with, for example, work email addresses or joint social media accounts).They should avoid contacting a debtor via certain communication channels if the debtor has requested to be contacted through a particular channel.The regulators have taken the opportunity to do a general update of the guidelines, which are intended to help debt collectors, and creditors using debt collection agencies, understand how consumer protection laws apply to them.The guide says creditors and debt collectors should take a "flexible, fair and realistic" approach to collections. This includes recognising debtors who are vulnerable and experiencing financial hardship, and are making meaningful and sustainable payment arrangements.A creditor may be responsible for their agent's collection activities, even if the agent acts in a way that is contrary to an agreement or understanding between the creditor and agent about how the collection is to be undertaken.A creditor may also remain liable for conduct regarding a debt even if they have since sold or assigned the debt. Liability will generally remain for misconduct occurring before the sale or assignment of the debt.The guidelines spell out what constitutes "reasonable" contact with a debtor. A common complaint is that debt collectors harass debtors, even when they know the debtor can't pay. The draft says: "If you are aware that a debtor is unable to make meaningful and sustainable repayments towards a debt, then continuing to contact the debtor to demand payment will not be reasonable or appropriate."It also says that contacting debtors multiple times a day, without allowing an appropriate interval for the debtor to respond, is likely to be regarded as unreasonable contact and may amount to undue harassment.And it provides guidance on how debt collectors may represent the consequences of