Debt Collections Handbook Australia 2021

Debt Collection Handbook

  • Australia
  • Agriculture,
  • Automotive/Transport,
  • Chemicals/Pharma,
  • Construction,
  • Consumer Durables,
  • Electronics/ICT,
  • Financial Services,
  • Food,
  • General economic ,
  • Machines/Engineering,
  • Metals,
  • Paper,
  • Services,
  • Steel,
  • Textiles

11th October 2021

Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collections Handbook explains the different regulations and procedures for debt collections in Australia.

Amicable collections

General information

 

 

 

Handbook Report Page - Amicable Phase

 

 

 

Atradius Collections maintains a professional collection process, focusing on the relationships between our clients and their debtors at all times. Our team of collection specialists carry out the collection process in-house. We contact debtors both verbally and in writing whilst adhering to federal and state laws. When there is a case of dispute, we aim to reach an amicable solution between the creditor and the debtor. We do this by analysing contractual documents (e.g. signed contracts, orders, confirmations, invoices and delivery notes, as well as all standard terms that have been agreed upon). All investigations are completed with the assistance and agreement of our legal team.

Interest

Atradius Collections is not allowed to automatically charge interest to debtors unless the client’s terms and conditions and/or contract specifically outline the penalty for overdue payments. From a cultural point of view, Australian debtors very rarely agree to pay late payment interest. It is often used as a negotiation tool between debtors and collectors. However, if the matter leads to legal action and we file proceedings in the court for the debt’s recovery, then our claims will include a charge for overdue interest as agreed under each state’s laws and the court system. Again, debtors will always refuse to pay any interest in the first instance.

Debt collection costs

In Australia, debt collection costs are not chargeable to debtors unless the client’s terms and conditions and/or contract specifically outline exactly which collection costs become the responsibility of the debtor and when. Again, if the matter leads to legal action and we file proceedings in court for the debt’s recovery, our claim will include the court fees and solicitors’ costs, as agreed under each state’s laws and the court system. These will be charged to the debtor.

The Debt Collections Handbook presents a snapshot of Australia's economic situation and covers the following topics:

  • Accepted and most common payment methods
  • Types of companies
  • Safeguarding measures
  • Enforcement in debt, movable and immovable property
  • Legal & insolvency proceedings

To read more about steps and procedures undertaken in debt collections in Australia and other countries:

 

Disclaimer

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommendation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.