Recoveries Corp

So you have received a letter of demand or phone call from Recoveries Corp? You'd like to know who they are, why they are bothering you, and what you're rights are. This free website explains this and more. Note: this website is not connected with Recoveries Corp.

Who is Recoveries Corp?

Recoveries Corp is a debt collection company that collects debts owed to insurance companies such as NRMA and government departments such as the Australian Tax Department (ATO), Centrelink and the Department of Human Services. For example, you have a tax liability to the ATO that you haven't paid, or you have had a car crash and the other driver's insure says you owe them money. If these government departments or insurance companies are unsuccessful in obtaining the money you owe them, they engage Recoveries Corp to chase you for the money that is owed. Or sometimes the companies sell the debt to Recoveries Corp and Recoveries Corp chase the money as if it is owed to Recoveries Corp. Recoveries Corp claims on its website that it is "Australia's largest insurance recoveries company by volumes referred and funds returned". They have offices in both Sydney and Melbourne.

Will Recoveries Corp take me to court?

Whether or not Recoveries Corporation Pty Ltd are likely to take you to court will depend on the amount they claim you owe. For lower amounts (less than $2,000) it is often not financially viable to take someone to court as the costs can outweigh the return, and they can only claim a certain amount in costs from the defendant. For higher amounts (over $2,000) it is more likely that Recoveries Corp may take you to court. With both larger and smaller amounts, a key part of determining if you are likely to be taken to court by Recoveries Corp is the strength of evidence they have against you. For example, for vehicle accidents, it is often one person's word against the others. In obvious rear enders though (where you have run straight into the back of another car) there is often not a lot that can defend your position, so this would work against you. However, say with two cars colliding side on, then it may not be so obvious who is at fault, and although you are receiving letters of demand from Recoveries Corp on behalf of the insurance company, then it may not be so black and white that you owe money, so they may not ever take you to court, even for larger amounts over $5,000.

Can recoveries Corp call me at home?

Yes, debt collection agencies are entitled by law to call you at home. However, strict laws in Australia apply under Australian Consumer Law. The ACCC Debt Collection Guidelines detail the conditions under which you can be called at home. For example, Recoveries Corp are only permitted to call you at certain times of the week. They may only contact you by phone Monday to Friday 7.30 am–9.00 pm and weekends from 9.00 am–9.00 pm. The guideline recommends not exceeding three contacts a week, or 10 per month. However, if you advise Recoveries Corp that you don't wish to be phoned, and would prefer postal or email communication then they obliged to respect you wishes. So if you know your rights, then how and when Recoveries Corp contact you is in your full control. Recoveries Corp Solicitor General Brett Turnbull on the Recoveries Corp website says that debt collectors calling debtors "must adhere to Australian laws and be aware of the permissible timeframes in Australia for phone contact with debtors".

What if the matter is disputed

If the matter is disputed and you advise Recoveries Corp not to contact you again, then they are not permitted to keep sending you demands. In this case, the only option Recoveries Corp have is it take you to court. However, for small amounts (say under $5,000) this is often not feasible. However, for larger amounts, and where there is clear liability you may find you receive court papers. In fact, on the news paper of the Recoveries Corp website, there is an entry titled "Landmark legal case follows Undue harassment by debt collectors". In the article, Recoveries Corp Solicitor General Brett Turnbull is quoted as saying “debt collectors must stop contacting debtors once asked to do so in writing. Even if the debtor is liable for the debt, the collection agency must stop contacting the debtor and instead commence legal action.”

What are my other rights?

You have the right to ask Recoveries Corp to provide proof of the debt. In the case of debts to government departments such as the ATO, this may include a tax assessment for a prior year. In the case of a vehicle accident this would include a quote from the other parties vehicle repairer. However, in the case of vehicle accidents, Recoveries Corp also need to show why you are being held responsible for the debt. For example, you could ask why they are claiming you were the driver. Often you have exchanged names and addresses at the scene of the accident. And they also need to explain why they are claim you are at fault in the accident.

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