FAQ’S

Frequently Asked Questions

Is it expensive to use a debt collector?
It does cost to engage the services of a debt collector. However, a debt collector is only paid when resolution is achieved. A collector will advise about any additional cost likely to expended in proportion to the size of the debt in question but the final decision will be yours. Commission rates are charged only on the amount settled or recovered.

Who does a debt collector work for?
A debt collector is contracted to the creditor, the person who is owed the debt. The collector will advise you of the good and bad issues(if any)while protecting the interests and reputation of the clients business 

What do I do if contacted by a debt collector about a debt that I know nothing about?

Unfortunately sometimes the details given to the debt collector are incorrect. If you are contacted about a debt you know nothing about and you believe that the debt is not yours, contact the debt collector immediately and give the collector any information you can that may assist in having this matter resolved to ensure your credit record is not affected.

What if I have already paid the account?

At times you may be contacted regarding an account that you have already paid. Contact the collector quickly will prevent possible legal action. You will likely be required to provide any proof of payment such as receipts, bank statements and the like which are essential for locating a missing payment within a clients system should this occur.

If I am contacted by a debt collector, does that give me a bad credit rating?

You do not automatically get a bad credit rating just because you have been contacted by a debt collector. It may be, however, that the creditor has already listed your payment default on the national bad-debt database. Should you refuse or neglect to pay the debt upon demand by the creditor or debt collector, your payment default may be listed on such a database. If you dispute the debt in part or in whole, it is important that you tell the debt collector of this dispute so that details of such can be read along with your default listing.

Will a debt collector come to my house or my place of work?

The only occasions in which a debt collector will have someone visit your home or your place of work is when you have been unable to be contacted or have not returned messages left for your attention, or you do not have telephone contact and have not responded to mail sent to you.                

What if I don’t owe that debt or it has been paid?

If you firmly believe that the debt you have been contacted about is not your debt or it has since been paid, immediately contact the debt collector and provide any assistance that might help have the matter resolved. This contact will enable the collector to verify the facts and once proven can have your details purged from the debt collector’s database leaving your credit rating in tact.

What if I admit the debt but can’t pay it?

If you agree that you owe the debt but can not afford to pay it, several options exist:

• If you merely cannot pay the whole debt now, it may be possible to enter a repayment arrangement with the creditor, via the debt collector. You may also be asked to complete a statement of financial circumstances, confession of claim or perhaps a personal guarantee.
• If you agree you owe the debt but cannot pay the debt even by installments and you have other debts also, should these debts total no more than $12,000 then you can apply to the District Court for a summary Installment Order or consider using the No Asset Procedure.
• If you admit that you owe the debt but refuse to pay it and it is not in dispute, then you can expect the creditor, via the debt collector, to take possible legal action to recover the debt. This will necessarily add further costs of those proceedings to the debt, payable by you. Should the creditor achieve judgment in the debt, such judgment against you will be advertised in the New Zealand Mercantile Gazette. You will also have your payment default listed on the national bad-debt database.

What if I want to pay the debt back in installments?

It is possible to come to a suitable arrangement with the creditor to whom you owe the debt to who will allow you to repay the debt by regular installments. Any arrangement entered into must be adhered to as if not the creditor is entitled to commence further action immediately a payment is missed.

What do I do if I dispute the debt I am contacted about?

If you have a dispute, in whole or in part, it is important that you advise the debt collector of the details of the dispute. This will require some proof as to what the dispute is about to ensure the collector can advise their client of the problem before further action is taken.