Debt collectors
Information about working as a debt collector
Debt collection is a legitimate and necessary business activity that involves recovering payment from consumers for outstanding debts they are legally obliged to pay.
A debt collector is a person who, on behalf of another person, collects or requests payment of debts.
Debt collectors operating in Western Australia must be licensed under the Debt Collectors Licensing Act 1964. This Act sets out licensing requirements and regulates the management of trust accounts.
Consumer Protection has developed the Debt collectors trust accounting: A reference manual (PDF 138 KB) . It is a guide designed to assist debt collectors in establishing and maintaining trust accounts.
For information on the licensing process and for application forms, refer to Licensing.
The Debt Collectors Licensing Act 1964 does not spell out what is proper and/or improper conduct towards debtors on the part of debt collectors. The conduct of debt collectors towards consumers is covered by provisions in a number of consumer protection laws including:
- the Fair Trading Act 1987 (administered by the Department);
- the Consumer Credit (Western Australia) Code (administered by the Department);
- the Privacy Act 1988 (Commonwealth legislation);
- the Trade Practices Act 1974 (administered by the ACCC); and
- the Australian Securities and Investments Commission Act 2001 (administered by ASIC).
The joint ACCC-ASIC publication Debt Collection Guideline: for collectors and creditors sets out what debt collectors should and should not do to avoid breaching these laws, other related legislation and mandatory codes. For a concise summary of the information in this publication, refer to Conduct.