Debt Collectors Who Tell The Boss Can Be Imprisoned Now
Sydney Morning Herald
Thursday January 15, 1987
Under new laws in NSW, debt collectors can be imprisoned if they tell an employer that an employee is in financial trouble.
Amendments to the Commercial and Private Inquiry Agents Act, implemented on January 1, are aimed at preventing the harassment of defaulting debtors, and come at a time when more and more Australians are falling into credit card debt.
The national vice-president of the Institute of Mercantile Agents, Mr Norman Owens, said the threat of prison for debt collectors was just one of a number of new provisions aimed at protecting the public and "ridding the industry of a minority of undesirables".
The harassment of debtors, including threats to inform a debtor's employer, neighbour or friends, or repeated telephone calls and personal visits at irregular hours, now carry fines of up to $1,000 and/or three months'imprisonment for individuals, and fines of up to $5,000 for corporations.
The only exceptions to the ban on informing employers hinges on debtor agreement or the necessity to garnishee wages or salaries.
Applicants for positions as private or commercial inquiry agents must now undertake a 12-month approved course at a TAFE college.
"Previously, virtually anyone without a police record was able to act as a commercial agent or private investigator, irrespective of qualifications or experience," Mr Owens said.
Other amendments to the Act require commercial agents to deposit money collected from defaulting debtors in trust accounts, which must be audited within three months of the end of each financial year.
© 1987 Sydney Morning Herald