The ACCC and ASIC have launched a new version of ‘Debt collection guideline: for collectors and creditors’.

The joint publication has been revised with new rules aimed at enhancing guidance for anyone involved in debt collection.

The government bodies say the new guidelines will assist creditors, collectors and debtors to understand their rights and obligations, and ensure that collection activity is undertaken in a legal manner.

The watchdogs have made a number of big moves against dodgy debt-collectors in recent times.

In 2012, Courts found ACM Group Limited guilty of harassing and coercing debtors as well as engaging in “widespread” and “systemic” misleading and deceptive conduct around money recovery.

In 2013, the ACCC lumped over half a million dollars worth of fines on Excite Mobile for setting up a fake complaints-handling organisation to give debtors the false impression that disputes about liability were being assessed by an independent arbitrator.

The new guidelines provide practical guidance on:

  • when it is appropriate to contact a debtor, including what constitutes contact and reasonable contact hours, methods or frequency of contact
  • how the need for collection activity will be greatly reduced when debtors act promptly and responsibly, and collectors are flexible, fair and realistic
  • new communication technologies developed since the initial publication, including the use of social media platforms and auto-dialers, and the potential pitfalls to avoid in using such technologies.

The ACCC and ASIC say they are encouraging businesses to incorporate the recommendations of this guideline into their arrangements with agents and assignees.

ACCC says it consultation confirmed that guidelines continue to be effective in providing clarity about what is and is not acceptable conduct.

“Creditors and collectors have generally provided ongoing support for this guideline. However, on occasions some creditors and debt collectors go beyond what is reasonable and mislead, harass or act abusively towards debtors. This is unacceptable," ACCC Deputy Chair Delia Rickard said.

“If businesses do not adhere to this guidance issued by the ACCC and ASIC, they risk breaching the law in relation to harassment and coercion, false and misleading representations or unconscionable conduct. These breaches can attract significant penalties,” Ms Rickard said.

ASIC Deputy Chairman Peter Kell said: "It is critical that businesses engaging in debt collection are aware of their legal rights and obligations. Where there are instances of businesses disregarding these important consumer protection laws, we will take appropriate enforcement action. The guideline is designed to help businesses carry out their collection activities in a fair and measured way.”