If you have engaged a debt collector, or are considering it, understanding the regulatory framework they operate in is directly relevant to you. The ACCC and ASIC jointly publish a debt collection guideline (currently the 2021 edition) that sets the conduct standards for anyone collecting a debt in Australia — including original creditors collecting their own debts.
What the guideline covers
The guideline is comprehensive. It addresses contact frequency (in most circumstances, no more than three times per week), contact timing (not before 7:30am or after 9pm on weekdays, not before 9am or after 9pm on weekends, not at all on national public holidays), preferred contact methods, and what must happen when a debtor asks for contact to stop or be reduced.
It also covers the content of communications: correspondence must be accurate, must not be misleading about who is calling or the consequences of non-payment, and must not use language or tactics that are intimidating, threatening or harassing. A debt collector cannot imply that legal action has been taken when it has not, or that the debtor faces consequences that are not actually available.
What collectors can do
Within those rules, collectors have significant scope. They can contact debtors by phone, letter, email and SMS. They can make clear that the debt is overdue, that it is being handled formally, and that non-payment may result in legal action. They can negotiate payment arrangements and document them. They can report defaults to credit reporting bodies within the permitted framework.
Why this matters to you as a creditor
The guideline binds original creditors as well as third-party collectors. If you are collecting your own debts, you are expected to follow it. More importantly, if you engage a third-party collector, your choice of collector is a compliance choice: a collector who breaches the guideline creates reputational and regulatory risk that can attach to you as the original creditor.
This is not hypothetical. The ACCC and ASIC have the power to take action against both the collector and the originating creditor in serious cases. Choosing a compliance-first recovery partner is, in a meaningful sense, choosing your own regulatory exposure.
Hardship provisions
The guideline includes specific provisions for debtors experiencing financial hardship. When a debtor raises hardship, the collector is expected to consider it seriously, suspend pressure contact, and explore whether an arrangement is possible. Ignoring a hardship claim is a guideline breach — and a complaint ground.
Merion's process is built around the ACCC and ASIC guideline. Read how we operate to understand the standards we hold ourselves to.