faq11
Disclaimer: the author of this website is not a lawyer and this site does not constitute legal advice. All information on this website is of a general nature only.
11. How can I stop the letters from debt collectors?
Most people start off quite happily ignoring letters from private parking companies. Initially they become quite relieved when the letters don't generate any court action. However, eventually some people get sick and tired of these letters and want to put a stop to them. This FAQ is for those people who are sick and tired of them and want to stop the letters. If you are quite happy to keep receiving the letters, then you can ignore this page.
Debt collectors have a legal right to make contact up to three times per week (by phone or by letter) with persons who they believe owe a debt without breaking any laws. So if they are allowed to send you letters once a week, then what can you do? Well, there is one very powerful thing you can do. You see, firstly debt collectors can only contact you to collect a debt if they have "reasonable grounds to believe you owe the debt". And secondly, debt collectors are strictly limited in contacting you if the debt has been "disputed". Because most people follow the "ignore" rule, and simply ignore letters from the parking company the company (and/or debt collector) has no way of knowing that you dispute the debt, and so they quite legally continue to send you letter.
So what you need to do is dispute the debt. Once you have disputed it in writing, then the car park company, its debt collectors and its lawyers are breaking the law if they write to you asking for money. This is how you dispute the debt - I have a proforma for this letter of dispute on this link here. The beauty is that if they ignore your letter and they continue sending requests for money, then there is a fine of (up to) one million dollars.
References:
ACCC publication - Debt collection guideline: for collectors and creditors
Consumer Affairs Victoria publication - Guideline for debt collection
Victorian Fair Trading Act 1999
Examples of Legislation in the Victorian Fair Trading Act 1999 (refer PART 5B—DEBT COLLECTION):
Fair Trading Act 1999 - SECT 93M
Prohibited debt collection practices
(http://www.austlii.edu.au/au/legis/vic/consol_act/fta1999117/s93m.html)
93M. Prohibited debt collection practices
A person must not in trade or commerce engage in a prohibited debt collection practice while-
(a) collecting or attempting to collect a debt
Prohibited debt collection practice means-
(a) using physical force or undue harassment or coercion;
(j) disclosing or threatening to disclose debt information, without the consent of the debtor, to any other person who does not have a clear and legitimate interest in the information; Example Disclosing debt information when contacting a person who is not the debtor while attempting to locate or identify the debtor.
(k) making a false or misleading representation in connection with-
(i) the nature of a debt; or
(ii) the extent of a debt; or
(iii) the consequences of not paying a debt; or
(iv) the method of recovering a debt; Examples
- Falsely representing that a debt is a fine or other pecuniary penalty, or that a person has committed an offence.
- Using a letterhead which is liable to mislead the person to whom the letter is sent as to the identity, status or role of the person who used the letterhead.
- Falsely representing to a person who is not a debtor that, in relation to a debt, the person must prove or make a statutory declaration that he or she does not owe the debt.
- Threatening to give a credit reporting agency information that could affect a person's creditworthiness that could not be given or that would, if given, be false or misleading.
(m) contacting a person about a debt after the person advises in writing that no further communication should be made about that debt, unless the contact is by way of-
(i) an action issued through a court or the Tribunal; or
(ii) the threat of an action that the person to whom the debt is owed is entitled to issue through a court or the Tribunal and which the person intends to take;
(n) communicating with a person under 18 years of age in relation to a debt, if the person is not the debtor;
(o) demanding the payment of a debt from a person without having a belief on reasonable grounds that the person is-
(i) the debtor or the debtor's agent or representative; and
(ii) liable for the debt;
(p) communicating with a person in a manner that is unreasonable in its frequency, nature or content.
Victorian residents can also take action in VCAT obtain compensation
http://www.consumeraction.org.au/downloads/FS12B-Debtcollection-seekingcompensation-VCAT-150311.pdf
Disclaimer: the author of this website is not a lawyer and this site does not constitute legal advice