Issue Date: - Friday, 3 August 2007

Last call for unauthorised debt collection refund

Western Australian consumers who were wrongly charged a debt collection fee by Repcol (WA) Pty Ltd have less than a month to go to apply for a refund.

Repcol (WA) Pty Ltd established a $30,000 compensation fund after it incorrectly applied a 2.5% collection fee to consumers who had repaid their debt in full with one payment.

Consumer Protection Commissioner Patrick Walker said department officers detected the possible breach of the Debt Collectors Licensing Regulations during a proactive compliance visit to Repcol last year.

It is estimated that more than 4000 Western Australians may be eligible for a refund.

Mr Walker said debt collectors are allowed to charge consumers 2.5% of the debt amount if they repaid the debt in instalments. However Consumer Protection investigators found that Repcol had incorrectly applied this fee since 1991 to people who had paid off their debt in full in one payment.

“This situation highlights the importance of proactive visits on businesses because complaints alone do not necessarily provide a complete picture of what is happening in the market place,” Mr Walker said. “Consumer Protection took over the regulation of debt collectors in 2005 and began proactive visits last year to ensure that businesses were abiding by the law.”

Mr Walker said Repcol agreed to establish the compensation package and to provide an independently audited statement detailing the refunded payments to Consumer Protection.

Consumers who think they were incorrectly charged the fee should submit a claim for a refund to Repcol by 31 August this year. Claim forms can be obtained from Repcol’s website www.repcol.com.au or by contacting the company on (08) 9489 4604.