Creditor harassment refers to the unlawful practices, adopted by the lenders to collect debts from their borrowers, if they default or refuse to repay. Some lenders resort to giving violent threats, threats embarrassing to the debtor, calling the debtor relentlessly on telephone, and visiting the debtor’s home repeatedly to demand a repayment. These practices are unlawful, and if the debtors are harassed by the creditors in any of these ways, they can file a complaint against the creditor.
General Awareness is a Must
Debtors must be aware of which actions are lawful and which ones are not when it comes to debt collection by the creditors. The above-mentioned practices are unlawful, and if the creditors harass the debtors in such ways they can be charged under Section 60 of the Trade Practices Act 1974. The Act states that a corporation cannot use physical force, oppression, abusement, or any other form of harassment for debt collection.
How to Act When Creditors Harass
You must maintain a record of collection calls by your creditor, carefully documenting details like who called, what was said, and how you were treated. If the creditor is calling you at work, ask him to simply stop calling at office and give him your residence number. If the creditor continues to call you at office, his act would be considered illegal. If you are still in doubt, seek professional services of a lawyer.
Know your Rights
It is your right to ask the creditor to communicate to you in writing. This will help you to produce the exact details in court. In many cases, businesses outsource their collection work, so it may happen that you get calls from a completely alien company. However, this doesn’t bar you from exercising your right of asking for written communication. Register a complaint in your local ACCC office, if you feel that you are being harassed.
Don’t allow harassment on self. This is your human right.
Face up to bad financial situations with creditors, and put on a brave front. All matters always solve or can be worked out, eventually.