Debt collection record keeping and why it’s important

Today we’ll be covering why we believe it’s important to perform effective debt collection record keeping. You really should read this today.

Everyone should take accurate records when dealing with debt collectors and their collection activities. This way you can be fully informed.

The law protects you

In Australia, we’re really lucky! We’re afforded protection under the law when it comes to debt recovery action. That said – more protection is offered through debt collection record keeping if you owe money.

Debt collection record keeping
Endless phone calls: Pesky debt collectors just want your money!

If you’re needing to go to court, having good record keeping and documentation is fundamental. Going a step further, recording phone calls is helpful (though you will have to legally advise the debt collector that you’re doing this).

Types of debt collection record keeping

There’s some things that we really recommend that you record. These include:

  • The time and date of each and every phone call
  • Amounts that the debt collector says you owe
  • The bank that originally gave you the loan / credit
  • Payment plan options that they’ve agreed to
  • Name of the person you spoke to and length of call

It’s important to remember that anything agreed to over the phone doesn’t have much weighing. You need proof in writing. Basically, paperwork is going to stand up the most in the court room.

The reason why you’d want to record everything down is to give rise to whether the debt collector is operating illegally. Years ago they were really mean people, and most of them are a little nicer now. But they can still be aggressive, yet still be within the confines of the law.

If you still can’t pay

It’s best to receive legal advice first and foremost. We can also help you out through our recommended service which provides a great FREE 10 minute phone call.

There are consequences if you don’t pay up. Remember that debt collectors are nasty human beings and will continue to pursue the matter. They can take you to court and get you arrested if you’re still not paying up in extreme circumstances.

It’s a good idea to also communicate with them in writing. This way it’s more formal and they can’t force you to say anything over the phone in the heat of the moment.

Next steps

It’s really important that you take this seriously. What’s happening to you has dire consequences for your future – you don’t want to ruin it.

Let’s work together. We’re cool people, and The Debt Free Community has helped thousands of Australians thus far. We can assist you with any debt collection issues you’re having.

You’re welcome to ask us questions anytime. We understand your situation, and we’re happy to talk to anyone right now.

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