Debt Collection and Debt Recovery in Australia: Understanding Debt Collection and Debt Recovery
Debt collection or recovery can be a frustrating process: If you have tried sending friendly reminders, tried negotiating, and tried sending a debt collection letter—all to no result—the next step is to hire experienced debt collection and recovery lawyers. Debt collection or recovery lawyers can act in your place and perform specialised debt collection services so that you have a good chance of having your money returned.
What Is Debt Collection, And What Do Debt Collection Recovery Lawyers Do?
The Traditional Debt Collection Process
Traditionally, those seeking a debt collection for bad debt recovery, be it for the purpose of commercial debt recovery, such as business debt collection usually engage debt collection or recovery lawyers. The lawyers would then send a debt recovery letter (known as a “letter of demand”) to the debtor stating when they need to pay the debt. They also warn that if the debt was not paid by said date, the lawyers might pursue legal action and charge further legal costs.
If the debt is not paid, and collection procedures prove unsuccesful, the lawyers send a final letter before allowing legal action.
Traditional debt collectors fees varied depending on the debt recovery agency’s policies and the debt collection laws of the state or territory, but they generally ranged from 5 to 30 per cent of the value of the debt.
Debt recovery law in Australia allows selling debt to a collection agency. Most of these collection agencies will take a percentage of the total debit collection as payment. These debt recovery companies then take full responsibility over the collection process and pursue the debtor. If you are chased by these debt recovery companies to pay a debt, My Lawyers are able to protect your rights, and avoid your good credit rating from being ruined which may mean that you will not be able to get financed with credit cards or loans.
Online Debt Recovery
It is important to remember that My Lawyers have experienced, strong and vast legal knowledge in debt collecting and debt recovery as it is impossible to enter into effective debt recovery successfully without the assistance of such as My Lawyers who are ready and able to be engaged.
Get in Touch
To speak with one of our legal experts, please complete the contact form below or telephone us on (03) 8379 1000 to get in touch with us today.