Many clients are not aware that creditors, debt collection agents and solicitors engaging in debt collection activity are governed by national guidelines, specifically the Debt Collection Guideline for Collectors and Creditors (the “Guideline”) which was last updated in April 2021.   The Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) jointly produce the Guideline. ACCC and ASIC enforce Commonwealth consumer protection laws, including laws relevant to debt collection.   The Guideline applies to both creditors who are directly involved in debt collection and to specialist external agencies who provide debt collection services. Therefore, not only are debt collection

NSW CAPI AGENTS is now conducting drone surveillance in the Sydney and Illawarra regions. NSW Credit Law also incorporates NSW CAPI AGENTS. NSW CAPI AGENTS are licensed commercial and private inquiry agents. NSW CAPI AGENTS provides the following services to its clients in a discreet and professional manner: Process service Field calls Investigations and surveillance - now including drone surveillance Skip tracing - location services Repossessions Obtaining repossession orders and related legal services Commercial entity credit enquiries and mercantile defaults ASIC searches Land title searches Professional skip trace database searches  

Debt Collection in Australia When you are contacing your clients to chase overdue accounts then you are engaging in debt collection activity and you have to be aware of an abide by the national guidelines. In Australia, debt collection is regulated by the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC). These regulatory bodies have established guidelines to ensure that debt collection practices are fair and transparent. Here are some key guidelines to be aware of:   Fair Debt Collection Practices: Debt collectors must act fairly, reasonably, and without harassment or coercion. They should not use deceptive

Commercial Loan v Consumer Loan   In Australia, commercial loans and consumer loans are two distinct types of financial arrangements, each designed for different purposes and regulated differently. The main differences between these two types of loans are as follows: 1. Purpose: • Commercial Loan: Commercial loans are typically intended for business purposes. They are used by businesses to fund various needs, such as working capital, purchasing commercial real estate, acquiring equipment, or expanding operations. • Consumer Loan: Consumer loans are primarily meant for personal use by individuals. Consumers use them to finance personal expenses, such as buying a car, home renovations, paying for

The recent voluntary appointment of administrators at the debt collector Collection House should serve as a warning to debt collection firms that still push the boundaries of the guidelines and legislation that govern the industry.   Last week Collection House appointed FTI Consulting as voluntary administrators to develop a plan to save the business which was discredited by a 2019 report prepared by Financial Counselling Australia, Consumer Action Law Centre and Financial Rights Legal Centre.   The report highlighted Collection House and subsidiary Lion Finance as the debt collection agency with the highest number of court applications to put vulnerable debtors into bankruptcy.     The 2019

Want to sue a Trust? You cannot! KEY TAKEAWAY: ALWAYS IDENTIFY THE TRUSTEE WHEN ENGAGING WITH A TRUST AND ASK FOR A COPY OF THE TRUST DEED. A trust is a legal relationship where a person, known as the "trustee," holds and manages assets or property for the benefit of another person or group of people, known as the "beneficiaries." The trustee has a legal obligation to act in the best interests of the beneficiaries and manage the trust assets according to specific terms and conditions outlined in a trust deed or agreement.   Here are some key characteristics and concepts related to trusts

NSW Credit Law partners with CreditorWatch to provide its clients with credit reports on its commercial customers and debtors. Would you like to know if your customers have a large debt with the ATO? CreditorWatch is currently the only credit bureau in Australia reporting on this information. The ATO is Australia’s largest creditor responsible for the largest number of company windups in 2019. Historically, businesses would take on debtors with undisclosed tax debts and be caught off guard when the first mention on financial instability appearing when the ATO began wind up procedures. With the new legislation now in effect, creditors will have additional

It is the time of year when most business owners are thinking about their tax returns and of course looking at ways to reduce their tax liabilities for the financial year. One way to reduce your liability is to make sure that you claim a deduction for debts. By referring your debts to a debt collection agency or solicitor for debt recovery you can then write off that debt and you may be able to claim a deduction for income that cannot be recovered from a customer or debtor. This unrecoverable income is also known as a 'bad debt'. Income tax and

MITIGATE YOUR RISK In February 2022 NSW Credit Law has partnered with (creditor) watch so that it can provide its clients with commercial credit check services. Credit checks can be performed on any commercial entity that has an ABN or ACN. More than just an ASIC extract. Our searches include: Credit Risk Scores and Payment Ratings Payment Defaults Adverse Court Actions Adverse Insolvency Actions Cross Directorship ABR and ASIC data On file current ASIC extracts AFSA Bankruptcy Searches of Directors and Sole Traders Ability to lodge a Mercantile Footprint Credit Default Before you engage with new clients you can utilise the service to do

When should I refer a debt to a debt collection agency? The answer to this question depends on your own internal credit management procedures. It is well known within the business that the older a debt becomes the harder it is to collect. So sooner rather than later is suggested. We believe a debt should be referred to a collection agency as soon as you feel the debtor is not responding positively to your internal collection efforts. Look for these tell-tale signs that you have a recalcitrant debtor: The debtor has failed to honour, two or more promises to pay. Three or more