When collectors want to secure payment from the debtor this is where debt collection takes place. It might be from consumers or businesses and they are all legally bound to pay or to repay the money they owe. Before borrowing the money they know and they are aware that they must pay for what they owe.
How They Treat Debtors?
A debt collector in Australia like Complete Corp has undergone training and orientations on how they will treat their clients. They are oriented that they should treat debtors and third parties with fairness.
Even debtors who delayed in paying or have already past their due time of payment should also be treated with respect and courtesy. It is a big NO to harass or coerce them. A debt collector should always know the status of their doubt and the nature of their debt so it would be explained clearly to the debtor.
Let them understood their legal obligations or the circumstances they will be into if their debt will continue to be unpaid. Here are some acceptable reasons to contact a debtor:
- To give an update about the payment.
- To inform of the demand for the payment.
- Explain the circumstances they are in if the debt remains unpaid and explain the legal actions they may face, such as to move forward to Australian debt recovery if they remain unpaid.
- To know their payment arrangements and capacity to pay.
- If remain unpaid collectors will review and remind the agreed settlement.
- To confirm the reasons for not paying the debt.
- To know or investigate if the debtor has change location of the house or work or in this case, they will hire a private investigator Brisbane to know the whereabouts of the debtor.
What are the Behaviours of the Collectors that are not allowed under the Australian Law?
These are the things which are not allowed or illegal when contacting a debtor:
- It is a big mistake if the collector will use physical force or coercion. It is not allowed to use physical force or to harm them. This also includes a third party such as a family member or nearest keen of the debtor.
- Debtors who have unpaid debt are not allowed to be harass or hassle if there are no reasonable reasons.
- Giving the wrong information or deceiving them is not allowed
- Taking advantage of any circumstances is also not allowed
Things to Remember to Prevent Bad Debts
It is necessary to do a background check on the customers or the debtors before doing business with them. Always check and know the capacity to pay so this would not give a hard time on both parties. Chasing unpaid debts would also cost a lot and may take a toll on the business. If most of the debtors can’t pay on time this may affect the operation of the business.
Always secure the welfare of the business. Know well the debtor because it would not cause well if it will end hiring a private detective in the end just to know the location and whereabouts of the debtor. Only allow lending money to those people who have good records in paying their bills. Provide them with simple and easy and clear payment options so it would not give confusion and it will not cause the delay.