Debt Collectors | 3 Attentions To Turn An Incorrect Debt Claim In Your Favour

Posted on: 14 September 2016

Those dreaded calls from debt collectors are never pleasant, especially if the claim is incorrect or too old in the first place. This guide shows you some attentions to turn an incorrect debt claim in your favour. Knowledgeable lawyers can save you tens of thousands of dollars in late payments when you may not owe this money.

Know Your Rights Based On Australian Laws

Under the Limitations of Actions Act 1958, a creditor may not be able to take legal action if the debt is more than 6 years old.  This is because old evidence can likely be lost after an extended period.  The 6-year limitation period is based on the date you last paid or admitted that you owed the debt in writing. If the claim is completely incorrect, make sure you get documented evidence about the debt because it may not even be yours in some cases. This documented evidence can help you debate the claim with debt collectors. You may even speak directly to the company if you want to confirm certain details regarding the claim amount. If the debt amount is incorrect or too old, you can fight it. Your lawyer may be able to pull up certain laws that will stop you from paying incorrect debts. For instance, if the creditor is unable to furnish proper billing documents of your debt, then you may be able to win the case. In this case, debt collectors must cease all action until details have been established.

Check Your Credit Report To Prevent Addition Of Inaccurate Information

If you are fighting against an old or incorrect debt, be sure to check your credit report in the interim because inaccurate debt information can often be included in it. If you notice any discrepancies, you can get this information corrected without making any payment under the newly reformed Privacy Act 1988. You can generally request for a free credit report copy to check that no changes have been made while you are fighting an incorrect debt. This helps you ensure that your credit report isn't affected for any future loans you may take.

Be Aware Of Consumer Protection Guidelines

Debt collectors and creditors are governed by the Australian Consumer Law, which is enforced by state and territory protection agencies and the Australian Competition and Consumer Commission (ACCC). Debt collectors cannot recover debts by using physical force or coercion, especially if you're fighting their authenticity. They cannot undertake any deceptive, misleading or unacceptable conduct. If you face any of these situations, you may be able to fight them in the court through your lawyer. If poor behaviour has been proven, you may be able to negotiate a lower repayment or no payment at all.

These key attentions will help you turn an incorrect debt in your favour when dealing with debt collectors.


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