Debt Collector Chasing Money You Don’t Owe? How to Stop It and Get Money Back (Australia 2026)
Last updated · Reviewed by the Claim Done team · Not legal advice
If a debt collector is chasing you for a debt that is not yours, already paid, the wrong amount or too old to sue on, you can dispute it, stop paying the amount you do not owe, and claim back money you were pushed into paying. The Australian Consumer Law and the ASIC Act ban harassment and misleading conduct by collectors, and the ACCC and ASIC debt collection guideline says collection should be suspended while a disputed debt is checked. The route is five steps: dispute it in writing, send a formal dispute and stop-contact letter, complain to AFCA or the regulator, send a final demand for any refund, then go to the tribunal or court.
Can you get money back from a debt collector?
Yes, where you paid money you did not owe, or paid because the collector misled or pressured you. Collecting a real debt is legal: a creditor has a right to be paid. But the collector must be able to show that you owe it, and how much, and must follow the law while collecting.
The rules that protect you:
- No harassment or coercion. A person must not use physical force, or undue harassment or coercion, in connection with payment for goods or services (Australian Consumer Law s 50). The ASIC Act s 12DJ has the same ban for financial services such as loans and credit cards, and breaking it is an offence.
- No misleading conduct. Collectors must not mislead you about the debt, the amount, or what will happen if you do not pay (ACL ss 18 and 29). If you lost money because of it, you can claim it back within 6 years (s 236), and a court can order a refund (s 243).
- Proof lies with them. The debt collection guideline says it is misleading to state or imply that you must prove you are not liable, and that in legal proceedings proof of the debt lies with the person who says it is owed.
- Disputed debts are put on hold. If you say you are not the debtor, the debt was never incurred, or it has been paid, the guideline says collection activity, including credit report listing, should be suspended until identity and liability are confirmed. If liability cannot be established when challenged, collection should stop.
- Old debts. Once the time limit to sue has passed (usually 6 years, 3 in the Northern Territory), the guideline says it may be misleading for a collector to suggest legal action will or may be taken. In New South Wales, the debt itself is extinguished when the limitation period ends.
What this means in practice: you can refuse to pay an amount you dispute until the collector proves it, you can require them to deal with you in writing and at reasonable times, and you can claim back money taken wrongly.
If you have been served with court papers or a judgment. Act on the court papers first. A dispute letter does not stop the deadline on the papers, and it cannot undo a judgment. Get free legal advice straight away, or call the National Debt Helpline on 1800 007 007.
The most common debt collector problems
- A debt that is not yours. Same name, wrong person, or identity theft. The collector must have reasonable grounds to say you are liable, and should stop contact if your identity cannot be established.
- A debt you already paid. Send proof in writing. Collection should be suspended while it is checked. Claim back any second payment.
- The wrong amount. Extra fees, interest or “collection costs” added on. A collector should not say fees will be added unless the law or your contract allows them.
- An old, statute-barred debt. More than 6 years (3 in the NT) since the debt fell due or you last paid or acknowledged it, and no court judgment. You can refuse to pay and dispute any threat of court.
- Too many calls. The guideline recommends no more than three contacts a week, or 10 a month.
- Calls at the wrong time. By phone, Monday to Friday 7:30am to 9pm and weekends 9am to 9pm; none on national public holidays.
- Talking to your family or employer about your debt. Collectors must not discuss your debt with someone else without your permission.
- Threats. Threatening court action that is not intended, police, or seizing household items. Threats of violence should go straight to the police.
- Ignoring your representative. You can have a financial counsellor, community worker or lawyer act for you, and the collector should deal with them.
- A wrong default on your credit report. You can ask the credit provider to correct it for free.
The debt collection rules in detail
The ACCC and ASIC debt collection guideline
The ACCC and ASIC publish a joint guideline for collectors and creditors (ASIC Regulatory Guide 96, issued 13 April 2021). It sets out how the regulators see the law applying to debt collection, and AFCA can take it into account. Its key points for you:
- Contact times (your local time): phone Monday to Friday 7:30am to 9pm, weekends 9am to 9pm; face to face 9am to 9pm; at work, during your normal working hours or 9am to 5pm on weekdays; no contact recommended on national public holidays.
- Contact frequency: no more than three times a week or 10 times a month, counting actual contact. Too many attempted calls can also be harassment.
- Documents: requests for information should be dealt with as soon as possible, and copies of contracts provided without unreasonable delay. A collector can only charge for documents if your contract allows it. For regulated credit, if you dispute a liability in writing, the credit provider must explain in writing how it arises (National Credit Code s 38).
- Disputes: collection, including credit listing, should be suspended while a claim that you are not the debtor, never incurred the debt or already paid is checked.
- Representatives: you can have an authorised representative, and the collector should not contact you directly once it knows you are represented, with limited exceptions.
- Complaints: complaints must not be ignored, and a collector cannot insist that a complaint be in writing.
Time limits on old debts
Each state has a limitation law that sets how long a creditor has to sue on a debt. The guideline says the time limit “varies from state to state, but is usually six years (three years in the Northern Territory)” from when the right to sue arose or the debt was last acknowledged, for example by a payment.
| State | Law | Time limit for a contract debt | What a payment or acknowledgment does |
|---|---|---|---|
| NSW | Limitation Act 1969 ss 14, 54, 63 | 6 years from when the cause of action first accrues; then the debt is extinguished | Restarts the clock only if made before the 6 years end |
| QLD | Limitation of Actions Act 1974 ss 10, 35, 36 | 6 years from when the cause of action arose | Restarts the clock from the date of a signed written acknowledgment or the last payment |
| TAS | Limitation Act 1974 ss 4, 29 | 6 years from when the cause of action accrued | Restarts the clock from the acknowledgment or last payment |
| NT | Limitation Act 1981 s 12 | 3 years from when the cause of action first accrues | Can restart the clock: get advice before paying |
| VIC, WA, SA, ACT | State limitation Acts | Usually 6 years (ACCC and ASIC guideline) | A payment or acknowledgment can restart the clock: get advice before paying |
Be careful with “token” payments on an old debt. In most states a small payment or a written acknowledgment can restart the clock. Get advice from a financial counsellor before paying anything on a debt you think is statute-barred.
Credit reports
A default can only be listed for consumer credit if you are at least 60 days overdue, you were sent a written notice asking you to pay, the amount is at least $150, and the debt is not statute-barred (Privacy Act s 6Q). If a listing is wrong, ask the credit provider to correct it. If it is satisfied the information is inaccurate, out of date, incomplete, irrelevant or misleading, it must take reasonable steps to correct it within 30 days, and it cannot charge you for the request or the correction (s 21V).
What you can claim
- Money paid on a debt you did not owe. A debt that was not yours, already paid, or wrongly calculated.
- Fees and charges added without a right to them. Collection fees, document fees or charges your contract did not allow.
- Payments made because you were misled or pressured. For example, paying because a collector threatened court on a statute-barred debt. In a case reported in the ACCC and ASIC guideline (Collection House v Taylor [2004] VSC 49), the court ordered that the debtor did not have to pay a statute-barred debt and that the creditor return the money she had paid.
- Your other losses. Reasonable costs caused by the collector’s conduct, for example bank dishonour fees from an unauthorised deduction.
- Correction, not money. Removal of a wrong default and confirmation in writing that the debt is closed.
List each payment with its date, amount and how it was paid, and the reason it was not owed.
Worked example (round numbers, for illustration only). A collector chases a man in Sydney for a $2,000 phone debt that fell due in 2017. He has not paid or acknowledged it since. After a call saying he “will be taken to court next week”, he pays $500. The 6-year limit had already passed, and in New South Wales the debt was extinguished at that point, so he disputes the rest, asks for written-only contact, and claims back the $500 he was pressured into paying, plus a $100 “collection fee” the collector added that his contract did not allow: $600 in total.
Evidence to gather
- Every letter, email and text from the collector, and a call log: date, time, the name of the person and the company, and what was said.
- The amount they say you owe and any breakdown of principal, interest, fees and charges.
- Your records of the original account: contract, statements, and proof of any payments.
- The date of your last payment or written acknowledgment on the debt.
- Proof the debt is not yours if that applies: a police report or identity theft report, or ID showing a different date of birth or address.
- Bank statements showing what you paid the collector, and when.
- Your credit report, if a default has been listed.
- Any court papers (if you have these, deal with the court deadline first).
How to get your money back: 5 steps
Step 1: Dispute it in writing
Write to the collector: say why you dispute the debt (not yours, already paid, wrong amount, too old), ask for a copy of the contract and a statement showing the amount, how it was calculated, payments made and amounts owing, and ask them to contact you only in writing. If you already paid, send copies of the proof. Moneysmart suggests asking a harassing collector in writing to stop. Do not pay the amount you dispute while you wait for the proof. Keep a copy of everything.
Step 2: Send a formal dispute and stop-contact letter
If the collector keeps calling, ignores your dispute or will not send proof, send our Debt Collector Dispute and Stop-Contact Letter. It demands written proof of the debt before any further contact, limits how and when they may contact you, asserts the time-limit defence where it applies, puts them on notice under the ACCC and ASIC guideline, and asks for any money wrongly taken to be refunded within 14 days.
Send the debt dispute letter – $49
We will not prepare this letter if you have been served with court papers or there is a judgment, because it is the wrong document then. For a straight refund from a business that took money it should not have, a general letter of demand also works.
Step 3: Complain to AFCA or the regulator, with the letter attached
The Australian Financial Complaints Authority (AFCA) is free, and its members include banks, credit providers and debt collection agencies. Check the collector (and the original creditor) on AFCA’s member search. AFCA first gives the firm the chance to resolve your complaint. If AFCA makes a determination and you accept it, the firm generally must carry it out within 30 days. AFCA can also help where a firm keeps up debt recovery or legal action after you asked for hardship help. Call 1800 931 678. Your letter from Step 2 is your complaint to the firm, so attach it.
The regulators. ASIC deals with misconduct in collecting debts for financial products and services (credit cards, loans, debts sold to debt buyers). The ACCC deals with debts for other goods and services (phone, utilities, trades). You can report a collector’s misconduct to the right one.
Help with the debt itself. If you owe the debt but cannot pay, the National Debt Helpline (1800 007 007) gives free, confidential advice, and a financial counsellor can negotiate for you.
Step 4: Send the final demand
If money you paid has not been refunded, send a final demand that quotes your dispute letter, the collector’s response and your AFCA or regulator reference, and gives the date you will file a claim.
Step 5: Take it to the tribunal or court
If the collector is not an AFCA member, or you want an order for the money, claim it in the state where the collector does business, as a consumer or civil claim: for example for money paid that was not owed, or loss caused by misleading conduct (ACL s 236). We prepare the application from your answers (in Western Australia, South Australia and Tasmania, the Magistrates Court claim).
Prepare your tribunal application – $97
Our Hearing Bundle ($97) organises your evidence: call log, timeline and payments.
Where your claim goes in each state
For financial-firm members, AFCA is the free route in every state. For a court or tribunal claim, use the forum in the state where the collector is.
| State | Tribunal or court | Money limit | Link |
|---|---|---|---|
| All states | AFCA (if the collector or creditor is a member) | See AFCA’s rules | afca.org.au |
| NSW | NCAT consumer claims | $100,000 | ncat.nsw.gov.au |
| VIC | VCAT | No cap for goods and services claims | vcat.vic.gov.au |
| QLD | QCAT minor civil disputes | $25,000 | qcat.qld.gov.au |
| WA | Magistrates Court | $75,000; minor cases $10,000 | magistratescourt.wa.gov.au |
| SA | Magistrates Court | $100,000; small claims $12,000 | courts.sa.gov.au |
| TAS | Magistrates Court | $50,000; minor civil claims $15,000 | magistratescourt.tas.gov.au |
| ACT | ACAT | $25,000 | acat.act.gov.au |
| NT | NTCAT small claims | $25,000 | ntcat.nt.gov.au |
Interstate rule. For NCAT (NSW) and VCAT (VIC), if the business is an individual or sole trader who lives in another state, the tribunal cannot decide the claim and it goes to a court instead (Burns v Corbett [2018] HCA 15). QCAT in Queensland is a court of a State (Owen v Menzies [2012] QCA 170) and is not affected. Collection agencies that are companies are not affected.
After you win: getting paid
If the collector or creditor still does not pay after an order, the order can be enforced. In most states it is registered or filed with the court and enforced as a judgment: a garnishee order on the business’s bank account, seizure and sale of property, or an examination of the business about its finances. If you accepted an AFCA determination, the member firm generally must carry it out within 30 days.
Tribunals do not collect the money for you. In NSW, Victoria, Queensland, the ACT and the NT, an unpaid tribunal money order is first registered, recorded or filed with a court. In WA, SA and Tasmania the Magistrates Court decides the claim, so you already have a court judgment. Then you apply for the court’s enforcement tools.
| State | How the order becomes enforceable | Garnishee: bank account and wages | Other options |
|---|---|---|---|
| NSW | Get a certified copy of the NCAT order (no fee) and register it with the Local Court (filing fee applies) | Yes: Form 69 with Form 70 (bank) or Form 71 (wages); no filing fee | Writ for the levy of property (Forms 65, 66); examination notice (Form 51 or 52) |
| VIC | Ask VCAT to have the order recorded at the Magistrates’ Court | Yes: attachment of debt (Form 71A or 71B); attachment of earnings (Forms 72A, 72B, with a hearing) | Warrant to seize property (Form 68A); oral examination (Form 67A); instalment order |
| QLD | File the QCAT order and an affidavit with a court (the Magistrates Court up to $150,000) within six years; free | Yes: enforcement warrant for redirection of debt (Form 76 or 77) or of earnings (Form 78), with Forms 9 and 74 | Seizure and sale (Form 75); enforcement hearing |
| ACT | File the sealed ACAT order and an affidavit in the Magistrates Court, serve Form 2.49, wait 7 days | Yes: debt redirection (Form 2.62 or 2.63); earnings redirection (Form 2.64) | Seizure and sale (Form 2.59); enforcement hearing (Forms 2.50, 2.51) |
| NT | Register the NTCAT order with the Local Court (certified copy and affidavit; no fee) | Yes: attachment of debts order; attachment of earnings order with a protected earnings rate | Warrant of seizure and sale; examination summons; charging order |
| WA | Already a court judgment; apply with Form 6 and the fee | Yes: debt appropriation order (Form 6, Form 2 affidavit); earnings appropriation order (individuals only, after an instalment order is broken) | Property (seizure and sale) order; means inquiry |
| SA | Already a court judgment; start through CourtSA, Enforcement tab | Yes: garnishee order (draft Form 148); wages protected to 90% of the weekly national minimum wage | Warrant of sale (Form 163); investigation or examination summons |
| TAS | Already a court judgment; file enforcement process at the registry ($49) | Yes: provisional, then final, garnishee order attaching a debt or earnings | Warrant to sell property; judgment summons and oral examination |
Questions people ask
Do I have to pay a debt collector if I do not owe the money?
No. If the debt is not yours, has been paid, or the amount is wrong, dispute it in writing and ask for proof. The ACCC and ASIC guideline says collection should be suspended while a claim that you are not the debtor, never incurred the debt or already paid is checked, and should stop if liability cannot be established.
How many times can a debt collector call me?
The ACCC and ASIC guideline recommends no more than three contacts a week, or 10 a month, counting actual contact, and only when necessary. Phone calls should be between 7:30am and 9pm on weekdays and 9am to 9pm on weekends, and not on national public holidays. Unduly frequent contact can be undue harassment.
Can a debt collector chase a debt older than 6 years?
They can ask, but in most states they cannot win in court once the limitation period has passed (usually 6 years, 3 in the Northern Territory), and threatening court may be misleading. In New South Wales the debt is extinguished. A payment or acknowledgment can restart the clock in some states, so get advice before paying. Our Debt Collector Dispute and Stop-Contact Letter asserts this defence.
Can I tell a debt collector to stop calling me?
Yes. Ask in writing for contact in writing only, and for the harassment to stop. Moneysmart says if a collector’s behaviour does not stop after that, you can complain to AFCA. Keep a call log as evidence. If a collector threatens violence, contact the police immediately.
Do I have to prove I do not owe the debt?
No. The ACCC and ASIC guideline says it is misleading for a collector to state or imply that you must prove you are not liable, and that in legal proceedings proof of the debt lies with the person who says it is owed. Ask for the contract and a statement showing how the amount was calculated.
Can I get back money I already paid to a debt collector?
Yes, if you did not owe it or paid because you were misled or pressured. Send a demand, complain to AFCA if the collector is a member, or claim at the tribunal or court. In one case reported by the ACCC and ASIC, the creditor was ordered to return money paid on a statute-barred debt. A misleading conduct claim can be brought within 6 years.
Is AFCA free, and can it make a debt collector pay?
AFCA is free for consumers and its members include debt collection agencies, but it can only deal with members, so check AFCA’s member search first. The firm gets a chance to fix the complaint, and if you accept an AFCA determination, the firm generally must carry it out within 30 days. Call 1800 931 678.
Can a debt collector talk to my family or my boss about my debt?
No. Moneysmart says debt collectors must not discuss your debt with someone else without your permission, and that the protections against harassment also apply to your family. Workplace contact should only be during your normal working hours, and the guideline sets limits on face-to-face contact.
A collector put a wrong default on my credit report. What can I do?
Ask the credit provider in writing to correct it. Under the Privacy Act, if it is satisfied the information is inaccurate or misleading it must take reasonable steps to correct it within 30 days, and it cannot charge you. A default needs at least 60 days overdue, a written notice and at least $150, and cannot be listed for a statute-barred debt.
What if a debt collector has taken me to court?
Deal with the court papers first. Moneysmart says to get free legal advice straight away if you receive a notice about being taken to court, because if you ignore it you risk your goods being repossessed and sold. The papers state a deadline to respond, and a dispute letter does not stop it. Free help: a community legal centre, Legal Aid, or the National Debt Helpline on 1800 007 007.
I owe the debt but cannot afford it. What are my options?
Tell the collector you are in financial hardship and ask for an affordable payment plan; Moneysmart says they must consider your request. Get the agreement in writing. The National Debt Helpline (1800 007 007) is free, and a financial counsellor can negotiate for you. If a lender refuses hardship help, AFCA can help.
What should a letter disputing a debt say?
Give the collector’s reference, say clearly that you dispute the debt and why, ask for the contract and a statement of how the amount was calculated, ask for written-only contact, and state that you will not pay the disputed amount until they prove it. Our dispute letter covers all of this. See also how to write a letter of demand.
Sources
- ACCC and ASIC, Debt collection guideline: for collectors and creditors (RG 96, 13 April 2021); ASIC, Debt collection
- Moneysmart (ASIC), Dealing with debt collectors (updated 13 October 2026)
- AFCA, Make a complaint, Complaints AFCA can deal with, How we resolve complaints and our Rules
- Competition and Consumer Act 2010 (Cth), Schedule 2 (Australian Consumer Law) ss 18, 29, 50, 236, 243; ASIC Act 2001 (Cth) s 12DJ; Privacy Act 1988 (Cth) ss 6Q, 21V: legislation.gov.au
- Limitation Act 1969 (NSW) ss 14, 54, 63: legislation.nsw.gov.au; Limitation of Actions Act 1974 (Qld) ss 10, 35, 36: legislation.qld.gov.au; Limitation Act 1974 (Tas) ss 4, 29: legislation.tas.gov.au; Limitation Act 1981 (NT) s 12: legislation.nt.gov.au
- High Court of Australia, Burns v Corbett [2018] HCA 15
All sources checked 19 October 2026.
Claim Done is not a law firm and does not give legal advice. This page is general information. For a complex or high-value matter, speak to a lawyer or a free community legal centre.