Hardship claims from debtors are a normal part of commercial debt recovery. When a debtor tells us they are in financial difficulty, we assess the claim and respond in a way that is fair, compliant with the ACCC and ASIC guideline, and consistent with your interests as the referring client.
Our approach:
- Assessment — we ask the debtor to describe their situation. We do not accept every claim at face value, but we do take genuine hardship seriously. Where a debtor can provide supporting context — reduced income, illness, a specific financial event — we take that into account.
- Sustainable arrangement — where hardship is genuine, we work toward an arrangement the debtor can actually maintain, rather than one that will fail in two instalments. A sustainable arrangement that runs to completion is a better outcome than an aggressive one that defaults.
- Transparency with you — if a debtor claims hardship, we will keep you informed. For significant adjustments — such as a very extended arrangement or a temporary pause in recovery — we may seek your instructions before proceeding.
- Continued accountability — entering a hardship arrangement does not mean the debt is forgiven. It is a structured path to repayment. We monitor compliance and follow up if payments are missed.
We do not let hardship claims be used as a strategy to avoid payment without substance. But we also do not apply pressure that makes a genuine difficulty worse. If you have concerns about how a specific account is being managed, contact us and we will discuss it with you.
Was this article helpful, or still not sure? Our team is happy to talk it through.