CP 61 Debt collection guideline: For collectors creditors and debtors (first draft)
Released 14 February 2005. Comments closed 31 March 2005
Joint publication with ACCC:see also CP 66.
The ACCC and ASIC are committed to providing guidance to business on how they can comply with the laws the ACCC and ASIC administer and to improving consumers’ understanding of their rights and obligations.Debt collection and the Trade Practice Act 1999 is an example of such guidance. The 1999 guideline is in need of revision for a number of reasons.
Since its publication:
- responsibility for consumer protection in relation to financial services was transferred to ASIC (in 2002). This includes responsibility for undue harassment and coercion, unconscionable conduct and misleading and deceptive conduct in relation to financial services
- a number of relevant cases have been decided—when the 1999 guideline was produced, s. 60 of the Trade Practices Act had not been tested in court
- industry practices in relation to debt collection have undergone significant change and development
- problems relating to debt collection have emerged as a trend in the ACCC’s campaign to protect disadvantaged and vulnerable consumers.
ASIC also receives significant numbers of complaints on debt collection.