The activities of debt collectors are governed by the Australian Consumer Law and Fair Trading Act and the Australian Competition and Consumer Commission.
Essentially debt collectors are prohibited from recovering our fees from a debtor unless a contract exists between the parties allowing for this to occur. Our legal advice indicates that for the addition of our debt collection fees to be legally binding, there must be a written and signed agreement in effect. You may be able to charge the debtor the debt collection costs if it is specified in your terms and conditions or credit application. We offer a free review of your terms and conditions to advise you if you are able to recover these costs.
