Victoria Cracks Down On Unfair Debt Collection Practices
New laws passed by Parliament will prevent Victorian businesses from adopting unfair and humiliating business practices to collect debts.
Consumer Affairs Minister Tony Robinson said the Consumer Affairs Amendment Reform Act 2010 expressly prohibited debt collectors from:
- demanding payment of a debt from a person without having a reasonable belief that the person is liable for the debt;
- making a false or misleading representations in connection with the nature of a debt, recovering a debt and the consequences of not paying a debt;
- using documents that resemble official documents including documents resembling notices issued under the Infringements Act 2006;
- making a false or misleading representation in connection with the nature of a debt; and
- attempting or threatening to take possession of another person’s property when there is no entitlement to do so.
Penalties of up to $143,340 may apply to corporations that breach these prohibitions.
Debt collectors repeatedly engaging in prohibited conduct – or anyone who aids them – could be liable to pay damages of up to $10,000 to compensate consumers who experienced humiliation or distress.
Mr Robinson said Victoria was the only state in Australia to specifically prohibit a wide range of unfair debt collection practices to ensure that collections agencies conduct their businesses honestly and fairly.
“The Brumby Labor Government introduced these laws to stop dodgy businesses from trying to exploit Victorians by using unfair and coercive business practices,” he said.
“We will not permit Victorians struggling with debt to be subjected to lies and intimidation during debt recovery, such as being contacted at work or false claims that family members’ property will be seized to pay the debt.
“By prohibiting specific conduct, these new laws make it easier to punish debt collectors for threatening or lying to Victorians.”
Mr Robinson said the news laws also made it clear that private car park operators had no power to issue and enforce fines and infringement notices against car park users.
“Some private car park operators are issuing notices that look official and contain legal language, but consumers should not be misled into thinking they are official infringement notices,” he said.
“Car park operators are now expressly prohibited from issuing misleading documents designed to look like official fines or infringement notices.
“Private car park operators are not authorised law enforcement agencies and cannot issue and enforce fines and penalties against consumers.”
Consumer Affairs Victoria (CAV) has received over 1550 enquiries and over 265 complaints over the past two financial years relating to fines or infringement notices issued by private car park operators.
For more information about debt collection in Victoria, contact CAV on 1300 55 81 81 or visit www.consumer.vic.gov.au
Topics: 2010, Australia, Brumby Labor Government, business, car parks, consumer affairs, Consumer Affairs Amendment Reform Act 2010, damages, debt, debt collection, debt recovery, economic development, economic growth, Economy, fines, Governance, government, Infringements Act 2006, moniter, monitor, news, penalties, society, Tony Robinson, unfair business practices, Victoria
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