VIC debt collectors legal action?

[Raydere]

hi
I'm an international studenta studying in melbourne Victoria . so I'm having this problem with goodlife health clubs and they want money from me because my account overdue is almost $190 , and now the debt collectors asking for $900 which I don't have any intention to pay. my question is how long they take to take me to court or take a legal action against me ? I've heard that they need around 12 years to enforce judgement. And how can i make this matter last as long as possible to take action ? and what actions they will make ? . and can i stall them ? thank you and sorry for my bad english.

 

[Rob Legat - SBPL]

Generally the statute of limitations on contracts (which is what you have is 6 years) - as long as you don't affirm the contract in some way (eg acknowledge the debt, make a payment). Once that time has passed it's technically still owing, but they cannot take action against you or demand its payment. Enforcing a judgment is 12 years.

If you're being asked to pay $900 for a $190 debt, dispute it with the debt collector. The ASIC/ACCC Debt Collection Guidelines then require them to verify the debt with Goodlife. They can't continue to pester you until it is verified. This, however, puts them in the realm of commencing legal action against you.

Your other option is to make a complaint under the unfair contracts legislation to the ACCC and Fair Trading Victoria, as it sounds like they're trying to charge you penalties to get the debt that high. You're lucky in the Victoria has one of the strongest consumer protection regimes when it comes to this. I would do this after asking them to verify the debt.

If you genuinely think you owe the $190, however, pay it. Not only is it a matter of carrying out your valid contractual promise, but it's much easier to get a regulator or a court onside if you hold up your end of the bargain.

 

[Raydere]

Generally the statute of limitations on contracts (which is what you have is 6 years) - as long as you don't affirm the contract in some way (eg acknowledge the debt, make a payment). Once that time has passed it's technically still owing, but they cannot take action against you or demand its payment. Enforcing a judgment is 12 years.

If you're being asked to pay $900 for a $190 debt, dispute it with the debt collector. The ASIC/ACCC Debt Collection Guidelines then require them to verify the debt with Goodlife. They can't continue to pester you until it is verified. This, however, puts them in the realm of commencing legal action against you.

Your other option is to make a complaint under the unfair contracts legislation to the ACCC and Fair Trading Victoria, as it sounds like they're trying to charge you penalties to get the debt that high. You're lucky in the Victoria has one of the strongest consumer protection regimes when it comes to this. I would do this after asking them to verify the debt.

If you genuinely think you owe the $190, however, pay it. Not only is it a matter of carrying out your valid contractual promise, but it's much easier to get a regulator or a court onside if you hold up your end of the bargain.

so my debt was $190 in march 27 , And now after I talked to them they replied with this message : "As the membership being sent to the debt collector on the 26/04/2017, the account can be recalled by paying the full arrears which is now $332.75. This is payable in full until the 24/05/2017. Please bear in mind after 5 working days from the 26/04/2017 you will incur a 25% recall fee. Contact us directly on 1800 if you would like to pay the arrears in full and recall your account from debt collection."
How can the debt get so high like this if my my membership is deactivated ?

 

[Rob Legat - SBPL]

You would have to read the terms and conditions of your contract to see what you have agreed to. If you can't see what the breakdown is from the documents you have, I'd be asking them for an accounting of what they claim you owe. The 25% 'recall fee' sounds like a penalty and a mocked up threat to get you to pay quicker - unless it is an amount the debt collector is actually charging them. Even then, that does't get them to the $900 you say they originally claimed.

 

[457Visafraud]

my debt was $190 in march 27 , And now after I talked to them they replied with this message : "As the membership being sent to the debt collector on the 26/04/2017, the account can be recalled by paying the full arrears which is now $332.75.

How can it be $190 on 27 while they say "being sent to debt collector on 26"?

This is payable in full until the 24/05/2017. Please bear in mind after 5 working days from the 26/04/2017 you will incur a 25% recall fee. Contact us directly on 1800 if you would like to pay the arrears in full and recall your account from debt collection."
How can the debt get so high like this if my my membership is deactivated ?

It sounds very uncommon that they can recall the account from the debt collector without you paying collector's fees as they would still pay the service.
These debt collectors usually work on a "no win no fees" basis so if Goodlife withdraw the request, they will charge you what they had to pay to the debt collector.
You need to read the contract and from there decide what is the best action.