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Whether you own your own business, or are responsible for credit control in a large company, you must be careful what representations you make to debtors about the consequences of non-payment.

While you are allowed to accurately explain the consequences of non-payment, it can be tempting to overstate or even misrepresent those consequences. If you do, you may breach laws against unconscionable conduct. This can result in a Court ordering any payments made to be repaid to the debtor.

Examples of statements that have been found to constitute unconscionable conduct include:

  1. That the debt is recoverable, when in fact recovery was statute barred by the passage of time (see more here
  2. That the debt has been, or will soon be, referred to lawyers for the commencement of proceedings (see more here
  3. That if a default is listed with a credit reporting agency, the debtor will not be able to obtain credit or will not get credit at a reasonable rate (see more here

At Matthews Folbigg Lawyers, we can help you ensure that your debt collection measures are compliant with all of the relevant legislation, and remain effective in keeping debtors under control. We can advise you on your existing policies or take steps to recover debts on your behalf.

If you have any questions please contact Jeff Brown at Matthews Folbigg on 9806 7446 or email