Dealing with a debt collector can feel intimidating, but Australian law gives you a robust set of rights. The key framework is the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010 (Cth)) and the ACCC and ASIC debt collection guideline (RG 96). Here is a plain-English summary of your rights.
The right to verify the collector's identity
You have the right to confirm that the person or firm contacting you is who they say they are. Ask for the collector's full name, their employer, and their contact details. You can hang up and call back using the number published on the collector's official website to confirm you are speaking to the right organisation. Merion's contact details are on this website.
The right to request proof of the debt
You can ask for a statement of account showing how the debt is calculated, what the original transaction was, and who the original creditor is. The collector is expected to provide this. See our article on requesting proof of a debt.
The right to dispute
If you believe the debt is not yours, is already paid, is incorrect in amount, or is otherwise wrong, you have the right to formally dispute it. Recovery must be paused while a properly lodged dispute is investigated. See our article on how to dispute a debt.
The right to be treated with dignity
The Australian Consumer Law prohibits harassment, coercion and unconscionable conduct. A debt collector must not:
- Threaten violence or use abusive language
- Make false or misleading representations (for example, claim legal action is imminent when it is not)
- Contact you at unreasonable hours or with unreasonable frequency
- Discuss your debt with third parties without your consent
The right to a representative
You can authorise another person — a friend, family member, financial counsellor, or solicitor — to deal with Merion on your behalf. Once authorised, we will direct our contact to that representative. See our article on having someone deal with us on your behalf.
The right to hardship consideration
If paying the debt would cause genuine financial hardship, you have the right to ask for hardship consideration. See our article on financial hardship support.
The right to request a contact preference change
You can request that contact be made only in writing, or only by a specific method. While not all requests can be accommodated in every circumstance, reasonable contact-preference requests must be respected. See our article on requesting contact in writing only.
The right to complain
If you believe your rights have been breached, you can:
- Raise a complaint with Merion directly using our complaints form at merion.com.au/complaint/
- Escalate to the Australian Financial Complaints Authority (AFCA) if applicable
- Contact the ACCC or ASIC if you believe the conduct amounts to a breach of the Australian Consumer Law
- Contact the Office of the Australian Information Commissioner (OAIC) for privacy-related concerns
For free, independent advice about your rights at any time, contact the National Debt Helpline on 1800 007 007.
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