Debt Collections Handbook Australia 2018

Debt Collection Handbook

  • Australia
  • Agriculture,
  • Automotive/Transport,

24th September 2018

Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collections Handbook explains the different regulations and procedures for debt collections in Australia.

Amicable collections

General information

 

 

 

Handbook Report Page - Amicable Phase

 

 

 

Atradius Collections maintains a professional collection process, focusing on the relationships between our clients and their debtors at all times. Our team of collection specialists carry out the collection process in-house. We contact debtors both verbally and in writing whilst adhering to federal and state laws. When there is a case of dispute, we aim to reach an amicable solution between the creditor and the debtor. We do this by analysing contractual documents (e.g. signed contracts, orders, confirmations, invoices and delivery notes, as well as all standard terms that have been agreed upon). All investigations are completed with the assistance and agreement of our legal team.

Interest

Atradius Collections is not allowed to automatically charge interest to debtors unless the client’s terms and conditions and/or contract specifically outline the penalty for overdue payments. From a cultural point of view, Australian debtors very rarely agree to pay late payment interest. It is often used as a negotiation tool between debtors and collectors. However, if the matter leads to legal action and we file proceedings in the court for the debt’s recovery, then our claims will include a charge for overdue interest as agreed under each state’s laws and the court system. Again, debtors will always refuse to pay any interest in the first instance.

Debt collection costs

In Australia, debt collection costs are not chargeable to debtors unless the client’s terms and conditions and/or contract specifically outline exactly which collection costs become the responsibility of the debtor and when. Again, if the matter leads to legal action and we file proceedings in court for the debt’s recovery, our claim will include the court fees and solicitors’ costs, as agreed under each state’s laws and the court system. These will be charged to the debtor.

The Debt Collections Handbook presents a snapshot of Australia's economic situation and covers the following topics:

  • Accepted and most common payment methods
  • Types of companies
  • Safeguarding measures
  • Enforcement in debt, movable and immovable property
  • Legal & insolvency proceedings

To read more about steps and procedures undertaken in debt collections in Australia:

 

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Disclaimer

The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.