6 Things A Debt Collector Cannot Do

A debt collector is the type of professional you call when you are having a tough time getting your debtors (the people who owe you money) to pay up. These types of professionals can be a real help because they understand all the legal regulations required for recovering debts and will take care of all of the difficult and uncomfortable debt-recovery processes for you.

While debt collectors are skilled at recovering funds owed to your company, they do have a number of important limitations in how they work. In this article, we will list five things a debt collector cannot do.

01. Debt Collectors Cannot Use Physical Force

It is illegal for debt collectors, or anyone else for that matter, to use physical force to recover debts. Using physical force violates the debtor’s personal rights. This type of illegal debt recovery method is also inhumane, especially considering that many debtors are not avoiding payment out of choice but rather because of their challenging circumstances.

02. Debt Collectors Cannot Use Coercion

Debt collectors are also not allowed to use coercion to get debtors to pay up. This means that they are not allowed to use force or threats to frighten debtors into paying. Instead, the collection company will gently remind debtors of outstanding fees and urge them to pay up with frequent reminders.


03. Debt Collectors Cannot Harass or Hassle Debtors

It is perfectly fine for debt collectors to send the debtors notifications via email, SMS, or even give them an occasional call to remind them of outstanding fees or to enquire about the personal circumstances that might be causing their reluctance to pay. However, a debt collector may not hassle or harass the debtor with calls or messages that are too frequent or that are made in an untimely manner or time of the day.

04. Debt Collectors Cannot Mislead or Deceive Debtors

Debt collectors are not allowed to deceive debtors about the amount of money that is due and they cannot mislead debtors with false threats about legal action or potential consequences. They are obligated to provide accurate information regarding financial statements, due amounts, and need to be transparent when it comes to legal matters.

05. Debt Collectors Cannot Take Advantage of The Debtors’ Situation

Taking advantage of the vulnerabilities of a debtor is also completely taboo. Factors like financial situation, disabilities or family matters cannot be used to coerce debtors to pay up or to make debtors feel negative about themselves or their circumstances.

06. Debt Collectors Cannot Disclose Sensitive Information to Third Parties

Your debt collector will be able to acquire some sensitive information regarding the debtor’s personal information and contact details. But they are never allowed to disclose this sensitive information to others or to reveal the financial position of the debtor. This is firstly to prevent identity theft, secondly to prevent unnecessary humiliation and thirdly due to the Privacy Act. 

Get Help From a Leading Debt Collection Agency in Victoria

When it is time to recover outstanding debts in a safe and efficient manner, there are no better professionals to trust than Vic Collect. Our debt collection agency will do anything within our power to help you recover some of the funds that are owed to your business. With Vic Collect, all of these stressful and uncomfortable recovery tasks are taken off your shoulders so you can focus more on running your business. 

Get a Free Quote

The commission we charge on debts collected is as per the below Commission Rate Table. The percentage charged is set on the debt amount you hand to us to collect.

Our Address

39 The Esplanade, Seymour VIC 3660