By the Debt Negotiators team · Last updated 4 November 2026
Debt collectors can ask you to pay a debt you owe, but the law limits how they do it. This guide covers what debt collectors in Australia can and can’t do, how to check and dispute a debt, how to set up a payment arrangement you can keep, and where to complain or get free help.
It’s general information, not personal or legal advice. For legal questions about your situation, speak to a free legal service such as Financial Rights or a lawyer.
What is a debt collector?
A debt collector is anyone chasing you for an overdue debt: the business you owe, an agency collecting for it, or a company that has bought the debt. The same rules apply to all of them.
The ACCC and ASIC debt collection guideline (April 2021, also called Regulatory Guide 96) covers in-house collection teams, collection agencies and debt buyers. When a debt is sold, Financial Rights explains, the sale “assigns” the debt to the collector. The guideline doesn’t have legal force, but it shows how regulators apply the law.
What can debt collectors do, and what can’t they do?
Debt collectors can contact you to ask for payment, accurately explain what may happen if you don’t pay, and offer a payment arrangement. They can’t harass or coerce you, mislead you, contact you at unreasonable times or too often, or tell other people about your debt.
Contact hours. The guideline treats these as reasonable, in your local time:
- Phone: 7:30 am to 9 pm Monday to Friday, 9 am to 9 pm on weekends.
- Face-to-face: 9 am to 9 pm Monday to Friday, 9 am to 9 pm on weekends.
- Your workplace: your normal working hours if known, or 9 am to 5 pm on weekdays.
- National public holidays: no contact recommended.
You can ask for different times, for example if you’re a shift worker, and the guideline says your reasonable wishes should be respected.
Contact frequency. The guideline recommends collectors “do not contact a debtor more than three times per week, or 10 times per month at most (when contact is actually made, as distinct from attempted contact)”. It’s counted per account, and a voicemail, email and text each count separately. Home visits should be a last resort, no more than once a month.
Harassment and misleading conduct. Moneysmart says collectors must not trespass, use overbearing tactics or abusive language, mislead or deceive you, or take unfair advantage of you because of illness, disability, age or lack of understanding of the law. The guideline adds they must not threaten legal action they don’t intend to take or pretend to be a solicitor, court or government official.
Employer, family and privacy. Collectors must not pressure you through your partner, family or other people, or suggest those people have to pay. At your workplace they must not reveal a visit is about a debt. Moneysmart says collectors must not discuss your debt with someone else without your permission. If a financial counsellor or lawyer acts for you, the collector should generally deal with them instead.
| Collectors can | Collectors can’t |
|---|---|
| Phone you 7:30 am to 9 pm weekdays, 9 am to 9 pm weekends | Contact you more than three times a week or 10 times a month per account (recommended limit) |
| Ask for payment and explain the real consequences of not paying | Threaten court action they don’t intend to take, or say you’ll go to jail |
| Agree to a payment arrangement | Pressure you to borrow, use your super early or pay more than you can afford |
| Take you to court for a debt you owe | Imply court action on a debt that’s past its time limit |
What should you do when a debt collector first contacts you?
Get the collector’s details and the details of the debt, and don’t agree to pay anything on the spot. Then check the debt is yours, the amount is right, it isn’t too old to be pursued in court, and the contact is genuine.
- Ask for details. The guideline says a collector should tell you who they are, who they work for, the creditor’s name, any buyer of the debt, the account details and the amount claimed. You can ask for an itemised statement, and collection of disputed amounts should pause until you get it.
- Check it’s yours. Financial Rights suggests you “Check you remember the debt and the amount claimed is about right.”
- Check it’s not statute-barred. The time limit for suing on a debt “varies from state to state, but is usually six years (three years in the Northern Territory)”, the guideline says, running from when the right to sue arose or you last acknowledged the debt, for example by paying. If you think a debt is too old, Financial Rights says not to pay anything and to get legal advice.
- Check it’s not a scam. Moneysmart’s scam advice is to look up the organisation’s publicly listed phone number and call it yourself. Pressure to pay fast is a warning sign.
- Keep a record. Moneysmart says to “Keep a record of all your communication with the debt collector.”
How do you dispute a debt?
Tell the collector, ideally in writing, why you think you don’t owe all or part of the debt, and ask for documents showing how the amount is made up. If they can’t establish that you’re liable, the guideline says collection should stop.
Collection, including credit listing, should pause if you say it isn’t your debt, was never incurred or has been paid. It’s misleading to say you must prove you don’t owe it. If you owe part, Financial Rights suggests repaying that part while disputing the rest.
The downside: disputing a debt you do owe won’t make it go away, and once you’ve denied liability the collector can choose to go to court.
How do you make a payment arrangement you can actually keep?
Work out what you can afford after essential living costs, offer only that amount, and get the agreement in writing. An arrangement that falls over after a few months can leave you worse off than a smaller one you keep.
- Budget first. List your income, essential costs and every debt. Moneysmart says, “Be honest about your financial situation, including other debts.”
- Ask. Tell the collector you’re in financial hardship and want a payment plan. Moneysmart says “They must consider your request.”
- Offer what you can sustain. “Only offer an amount you will be able to stick to,” says Moneysmart. The guideline encourages collectors to allow for your living expenses and keep arrangements “meaningful and sustainable”.
- Resist pressure. The guideline says it’s unacceptable to pressure you to pay in full or in unreasonably large instalments, pay a large upfront amount first, borrow from family or friends, take on more debt, or access your super early.
- Get it in writing. Confirm the amount, frequency and whether interest or fees still apply.
While you keep to the arrangement, the guideline says the collector generally shouldn’t contact you unless you ask, they’re offering a genuine better alternative, or you miss a payment. For a regulated loan or credit card, you can also make a formal hardship request, and go to AFCA if it’s refused.
You can also offer a lump-sum settlement for less, but it’s up to them whether to accept.
Can a debt collector take your home, car or wages?
Not just by asking. A collector generally needs a court judgment and then an enforcement order before your wages can be garnisheed or your property taken, unless the debt is secured over that property, such as a car loan.
Financial Rights says collectors can’t “Threaten to take and sell any of your property, unless they have a mortgage or security, or a court order”, or garnishee your wages without a court order. In NSW, Financial Rights explains you have 28 days to file a defence to a statement of claim, and if you do nothing the creditor can get a default judgment. After that:
- a garnishee order can take part of your wages, and it “continues until the debt is paid in full, or you leave that employer”
- a writ for levy of property lets the sheriff take and sell property to pay the debt.
Some income is protected: the guideline notes a social security payment is “absolutely inalienable”. If you get court papers, Moneysmart says to get free legal advice straight away. For your home specifically, see can a debt collector repossess your home?
What happens on your credit report?
An overdue debt can be listed on your credit report as a default, and a court judgment can be listed too. Both stay for five years, and paying a default doesn’t remove it, although the listing is updated to show it’s paid.
The OAIC says a default can only be listed if the payment is at least 60 days overdue and $150 or more, after two written notices. Its retention table confirms the 5 years.
The guideline says collectors must not threaten a listing that isn’t allowed, or exaggerate the consequences, such as saying you’ll never get a loan again. If a listing is wrong, you can ask for a correction. It’s free, and they must take reasonable steps to fix it within 30 days.
How do you complain about a debt collector?
Start with the collector’s own complaints process. If that doesn’t fix it, go to AFCA if the business is a member, report the conduct to ASIC or the ACCC, or complain to your state fair trading agency.
- The collector. Collectors must have an internal complaints process. If you’re being harassed, Moneysmart suggests asking them in writing to stop.
- AFCA. The Australian Financial Complaints Authority offers free, independent dispute resolution. Credit licensees must belong, and Financial Rights notes most lenders and debt collectors are members.
- ASIC or the ACCC. ASIC covers financial debts such as credit cards and loans (1300 300 630). The ACCC covers other debts such as phone or utility bills (1300 302 502).
- Fair trading. In NSW, complain to NSW Fair Trading on 13 32 20.
If you’re worried about your safety, contact the police.
Where can you get free help first?
Call the National Debt Helpline on 1800 007 007 for free, confidential financial counselling, or contact Financial Rights for free legal advice. It’s worth doing before you agree to anything.
- National Debt Helpline: 1800 007 007, weekdays 9:30 am to 4:30 pm, plus live chat. Moneysmart notes financial counsellors “may also negotiate with creditors on your behalf.”
- Financial Rights Legal Centre: Credit & Debt Legal Advice Line, 1800 844 949 (NSW).
- Community legal centres and Legal Aid also offer free legal advice.
Where might a paid service like Debt Negotiators fit?
A paid service may help if you’re dealing with several creditors or collectors at once, or if repaying in full isn’t realistic. Debt Negotiators is a fee-based service, and free help from a financial counsellor is available first.
If you can repay but need breathing room, we can negotiate informal agreements with several creditors or collectors. There’s no guarantee they’ll agree, and our fees add to your costs. If repayment isn’t realistic, our debt solutions page compares options, including debt agreements. These are formal agreements under the Bankruptcy Act, and they don’t affect secured creditors’ rights, such as a car lender’s. Understand what one involves first.
To see which options might suit you, Answer 9 quick questions or call 1300 351 008.
Frequently asked questions
Can I tell a debt collector to stop contacting me?
You can ask them not to use a particular channel if you give them another way to reach you. In Victoria, collectors can’t contact you after you’ve asked in writing for no further contact. Neither stops them suing for a debt you owe.
Can I go to jail for not paying a debt?
No. Financial Rights says collectors can’t send you to jail, or threaten to, just for owing a debt. Unpaid fines are different and can have serious consequences.
Will a payment on an old debt restart the time limit?
It can. The guideline says the limit usually runs from when you last acknowledged the debt, for example by paying, so get legal advice before paying anything on an old debt.
Does a debt buyer have the same rights as the original creditor?
A buyer can collect the debt but must follow the same rules. You may still be able to take a complaint about the period before the sale to AFCA.
Can a collector charge me for their collection costs?
In NSW, commercial agents must not demand or collect payment from you for the cost of their own collection activity. Elsewhere, ask the National Debt Helpline if you’re charged extra.
