QLD No Company Policy on Debt Collectors - Can Company Take Legal Action?

[Kelly85]

Hi there,

I completed a cert 3 and cert 4 in person training back in March 2014. I had paid $1000 off the total bill and was on a payment plan for the rest. As a result of losing my job and going through some personal things, I had to cancel the payments (hold) to which the company were happy to do for me. As the year went on, I wasn't working all that much and was still going through some financial issues. The company contacted me and requested I paid in full, in which I set up a payment plan with them, however prior to starting payments again, I asked if they would keep the $1000 I had already paid and not give me my cert 3 and 4 and if we could call it a day on the rest. They have advised that they will not accept this.

Now I understand where they are coming from, but I have not been able to pay anymore off the bill due to being a uni student. In this case, I have asked for the company policy, in which it doesn't say they can take any further legal action in regards to the monies owing, nor can they have debt collectors step in or attach interest on to the bill owing. They have, however, threatened this to me, but as it does not state this in the company policy, can they legally take this further?

Please someone help, thank you.

 

[hlly]

Yes, they can pursue the debt even if they haven't expressly mentioned this in a company policy.

My opinion is to see a credit and debt solicitor at a community legal centre to tell you your legal rights and they can contact the company on your behalf to negotiate a better outcome.

 

[JS79]

Hi,

A company has a right to institute debt recovery proceedings if they cannot recover their debt by using friendly reminders, payment plans etc.

Though according to the ACCC - a company cannot threaten to institute legal proceedings and then not institute them. This could be seen as misleading and deceptive conduct.

ASIC has a website and an ebooklet regarding debt collectors and your rights: Dealing with debt collectors
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ASIC's MoneySmart

 

[Kelly85]

I thought when signing a contract, if it doesn't state that they can proceed with legal action, interest on the balance or debt collectors, they legally are not able to do this? Also they haven't made any contact with me for around 7 months now.

Thank you both for your feedback, I shall seek further legal advise and check out the ASIC website.

 

[Ozwarlock67]

Someone told me once that if a debt is onsold to a collection agency, that makes them a third party intruder into a private contract and that they have no legal standing over the debt.
However, since you haven't been contacted for seven months, they might have let it go.