Many unfortunate circumstances can lead to non-repayment of a debt, such as illnesses, emergencies and other such disasters. While lenders do have a legal right to pursue a debtor, the debtor is protected from undue harassment and bullying from debt collectors.
Debt collector’s obligations
When a collector pursues a debtor, they must abide by certain rules and regulations, as set by the Australian Competition and Consumer Commission (ACCC) and Australian Securities and Investments Commission (ASIC). First and foremost, a collector can only initiate contact for a “reasonable purpose”, meaning a collector must …