QLD Debt Collectors Harassment?

[mixedup]

Without getting into the details, I've been asked for advice from someone who (8 months ago) rented an item from party A, however had a small accident. Party A told my friend to pay the excess and they would claim the remainder from insurance (party B). From what I understand, party B then passed on the full amount to a debt collector (party C).

The debt collector initially contacted my friend and wanted the full amount paid to them. My friend called party A who advised them not to pay them anything as it is sorted, and from their experience the debt collector will keep trying.

Several months later a new rep from Party C (debt collectors) are hassling my friend now. Seems they pass on the job periodically or something.

Anyway what formal action (if any) can my friend take to to stop this harassment? With the police? Or the Office of Fair Trading QLD? Or more scary is whether they have a leg to stand on here?

 

[Tracy B]

Hi Mixedup,

1. It sounds like Party A owes a debt to Party B, which Party B has sold to Party C, however, both Party B and C are holding your friend as responsible for payment, is this correct?
2. Did your friend enter into a contract of some sort with Party B?
3. Is Party A still disputing the debt?

If your friend believes Party C is acting improperly, your friend could contact the Financial Ombudsman Services.

 

[mixedup]

Hi Tracy - Yes you are correct re your point 1, except that Party A has communicated/agreed with my friend that they only had to pay the excess and remaining would be covered by their (Party A's) insurance. So my friend, whilst under the rental arrangement may have been responsible for full cost based on rental paperwork with Party A, after the incident Party A only required the excess from him. Total amount was around $2k, with the excess being a few hundred dollars.

Re point 2 - no my friend hasn't entered into any agreement with Party B or Party C.

Re point 3 - No Party A is happy, and even advising my friend not to give any money to Party C (debt collector) or talk to them.

So overall does Party C have any right to pester my friend ongoing, months and months after this? Does he have the right to raise this with the Financial Ombudsman then do you think?

 

[Tracy B]

It seems bizarre that Party B is claiming the debt directly from you as you are not in a contractual relationship with them. You need to find the source of their directly claim against you. Are you able to obtain a copy of the insurance policy between Party A and Party B?

You should raise this with the Financial Ombudsman Services to see:

• Whether Party B has a right to directly claim the debt from you (i.e. whether there is a debt against you at all);
• Whether Party B has followed credit management procedures in selling the debt to Credit C;
• If FOS can assist you, Party A and Party B is resolving this matter.