Debt collection is regulated by section 60 of the Trade Practices Act and, at the state level, section 21 of the Fair Trading Act 1999. The legislation prohibits the use of physical force or undue harassment or coercion in connection with the recovery of monies owed for goods or services supplied. The Fair Trading Act 1999 outlines conduct considered to be coercion or undue harassment. It includes:

• using a document resembling a court document or an official document to mislead a person in connection with a debt or the consequences of not paying a debt;
  
• serving a summons that has not been properly issued by a court;
  
• impersonating a bailiff or member of the police force;
  
• unreasonable communication with the debtor;
  
• doing or threatening to do any act that may intimidate, harass or expose to ridicule a debtor or a member of a family of a debtor; and
  
• refusal to leave a person's private residence or workplace when requested to do so.
  
  

In 1999, the Australian Competition and Consumer Commission (ACCC) released guidelines on undue harassment and coercion in debt collection prompted, in part, by concerns raised by a number of consumer organisations and representatives. The guidelines consist of two main parts - the first outlining descriptions and examples of the types of conduct that the ACCC determines are in breach of the law. The second part is the Debt Collection Compliance Guide, which assists businesses in implementing and maintaining legitimate debt collection systems without the elements of harassment and coercion. In the guidelines, the ACCC recommends that:

• collectors allow repayment of debts by instalments or over time;
  
• consumers should advise creditors of current contact details and contact them in times of financial difficulty to attempt to renegotiate repayment arrangements;
  
• collectors should not call the debtor before 7.30 a.m. or after 9 p.m., calls should be limited to no more than three per week, and no calls should be made to the debtor's workplace, debtor's children or third parties representing the debtor;
  
• collectors should avoid making personal visits to debtors; and
  
• collectors should not use abusive, threatening, offensive, obscene or discriminatory behaviour or language to a debtor or threaten violence or the use of physical force on any person or property.
  
  

If a debtor is unable to pay monies owed pursuant to an agreement with a creditor, the best thing to do is to contact the creditor direct and attempt to negotiate the matter. If a debtor is unsure of whether the behaviour of a debt collector is lawful, legal advice should be sought.