The Australian Competition and Consumer Commission (ACCC) and Australian Securities and Investments Commission (ASIC) today released their joint draft debt collection guideline for public consultation.

The draft guideline details the provisions of the federal consumer protection legislation most relevant to the debt collection industry*, including prohibitions against misleading and deceptive conduct, harassment and coercion, and unconscionable conduct.

‘The relevant regulatory framework and the debt collection industry has changed a lot since the ACCC released Debt collection and the Trade Practices Act in 1999. This draft guideline provides guidance to the debt collection industry on how to avoid breaches of these laws, as well as to consumers who are subject to debt collection activity, and creditors who use external agencies to collect debts’, ACCC Deputy Chair, Ms Louise Sylvan, said today.

‘The draft guideline reflects not only recent relevant court decisions, but also changes in the industry’s structure and practices. The joint guideline acknowledges the role of ASIC in enforcing federal consumer protection legislation in relation to financial services. This is a role ASIC did not have in 1999 **’, ASIC Executive Director of Consumer Protection, Mr Greg Tanzer, said.

‘Production of the draft guideline is a continuation of co-operative work between ASIC and the ACCC in relation to debt collection. It is a follow up to the release of Complaints about debt collection activity – the responsibilities of Commonwealth agencies on 8 November 2004***’, Mr Tanzer said.

Both the ACCC and ASIC are interested to hear the views of all stakeholders regarding the draft guideline and encourage all interested parties to make written submissions.

The draft guideline and discussion paper are available on the ACCC website at www.accc.gov.au and the ASIC website at www.asic.gov.au. Details about how to lodge a submission are contained in the discussion paper. Submissions are due by Thursday 31 March 2005.

Editor's note, 14 June 2005: You can now read or download those submissions for which consent has been given to be published from this website.

Download a copy of the:

• Draft guideline
• Discussion paper
• The ASIC/ACCC brochure, Complaints about debt collection activity, the responsibilities of Commonwealth agencies

* The Trade Practices Act 1974 and the Australian Securities and Investments Commission Act 2001. Debt collection activity is also subject to other legislation such as the Privacy Act or state and territory Fair Trading Acts. In addition to the ACCC and ASIC, complaints regarding debt collection can also be lodged with state or territory government consumer affairs or fair trading agencies, or an industry dispute resolution scheme. For example, complaints can be lodged with the Banking and Financial Services Ombudsman, or the Telecommunications Industry Ombudsman, if the debt collector is a member of these schemes.

** ASIC is responsible for consumer protection in relation to financial products and services under the Australian Securities and Investments Act 2001, the Corporations Act 2001 and other legislation. This role was extended to credit facilities in 2002, as part of the Financial Services Reforms Act 2001.

*** See ACCC Media Release [MR 245/04] and ASIC Media Release [MR 04-364] Debt collection: under scrutiny by ACCC and ASIC. The brochure is available on the ACCC website at www.accc.gov.au and ASIC website at www.asic.gov.au .