How to stop debt collectors contacting you: call limits, your rights and the letter to send

You can stop a debt collector from calling too often, at bad times or at your work by telling them, in writing, how and when they may contact you. The ACCC and ASIC debt collection guideline recommends no more than three contacts a week or 10 a month, phone calls only between set hours, and says collectors should stop using a method you have asked them not to use if you give them another one. A letter does not make the debt go away, but it puts your limits on the record.

Claim Done drafts a stop-contact letter to a debt collector from your answers for a flat A$29. You download it straight away and send it yourself.

Who the rules apply to

The rules are set out in the Debt collection guideline: for collectors and creditors, written jointly by the ACCC and ASIC. In it, “debt collector” includes creditors, collection agencies, debt purchasers and lawyers collecting for others, so the rules also cover a company that bought the debt.

“Contact” is wide too. It covers phone calls (including voice messages and calls you hang up on), letters, emails, text messages, social media and in-person visits.

If you owe money, debt collectors generally have a right to seek repayment. The rules are about how they do it.

How often and when debt collectors can contact you

The ACCC page on what debt collectors can and can’t do sets out the contact times from the guideline:

The times are local times in your State or Territory. On frequency, the guideline recommends a collector does not contact you more than three times a week, or 10 times a month at most, counting contact that is actually made. The limits are counted per account. The guideline also says that unreasonably frequent attempts, such as an automatic dialler that keeps calling back within a short time, may amount to undue harassment.

These are the guideline’s recommendations, not a fixed number written into a statute. Behind them sits the law. Section 50 of the Australian Consumer Law, and a matching section of the ASIC Act for financial services, prohibit undue harassment or coercion in connection with payment. The guideline describes undue harassment as unnecessary or excessive contact calculated to intimidate, demoralise, tire out or exhaust a debtor.

You can choose how they contact you

Moneysmart’s page on dealing with debt collectors says you can tell a debt collector how to contact you. If you do not want phone calls, you can ask for email only, or for contact through an authorised representative such as a financial counsellor. Moneysmart also says to keep a record of your request.

The guideline backs this up in several places:

• You can ask for contact at other or more restricted times, for example because you work shifts or care for children, and those reasonable wishes should be respected.
• Collectors should stop using a method you have asked them not to use, as long as you have given them another way to reach you.
• If you ask them not to visit your workplace and give another effective way to contact you, they should not visit you there.
• You have a right to an authorised representative. Once a collector knows you are represented, it generally should not contact you directly, with some exceptions.

Leave them a working way to reach you. The guideline says a collector may change the time of contact if it tried for a reasonable period at your requested times and could not reach you.

Rules that differ by State

Most of the rules above are national. Two footnotes in the guideline (April 2021) describe State rules that go further. These are the guideline’s descriptions, not the Acts themselves, so check the current law before relying on them:

What your letter should say

Keep it short and factual. It should:

1. Name the collector or creditor and give the account or reference number.
2. Say plainly that you are writing about how and how often they contact you.
3. Describe the contact so far: the channels, how often, the times, and any calls at work.
4. Say whether you have already asked them to stop or change, and when.
5. Set the limit you want: writing only, phone only within set hours, no contact at work, or contact through your representative.
6. Say the letter is about contact only and does not admit or dispute the debt.
7. Ask them to confirm in writing that they will follow the limits.

The structure of a stop-contact letter

The letter Claim Done drafts follows this shape:

• Your details, the date and their details: who it is from, who it is to, and the account reference.
• Background: one or two sentences saying you are writing about the manner and frequency of their contact on that account.
• The contact problem: what has happened, in your own words, with dates and times where you have them.
• Your requirements: a numbered list of the limits on method, hours and workplace contact.
• Basis: a reference to the ACCC and ASIC debt collection guideline on frequency, hours and method of contact.
• The debt: a plain line that the letter concerns contact only and does not stop lawful recovery of a debt that is owed.
• Request to confirm and sign-off: a request for written confirmation, and your dated signature.

How to send it and what to keep

Send the letter to the address or email on their letters, keep a copy and keep a log. Moneysmart suggests keeping copies of all correspondence, with the date and time of contact, the name of the person and company, how they contacted you and who said what.

What to do if the contact keeps coming

Moneysmart says to first complain to the lender or debt collector. Its guide to complaining says a formal complaint should be in writing, with the word “complaint” in the heading or subject line, your details, the problem and the outcome you want.

If the behaviour does not stop, Moneysmart says you can contact the Australian Financial Complaints Authority (AFCA) for free, independent dispute resolution. Moneysmart lists AFCA’s number as 1800 931 678 (9 am to 5 pm, Monday to Friday). The guideline says belonging to AFCA is a legal requirement for all credit licensees. For a phone or internet debt, the ACCC points to the Telecommunications Industry Ombudsman. You can also report a debt collector to the ACCC, although the ACCC does not resolve individual disputes.

For free help working out what to do about the debt itself, the ACCC’s debt help page lists the National Debt Helpline on 1800 007 007, open 9:30 am to 4:30 pm, Monday to Friday. Its financial counsellors give free and confidential advice.

Mistakes to avoid

• Thinking the letter ends the debt. It does not. If the debt is owed, the creditor can still take lawful steps to recover it.
• Ignoring court papers. Moneysmart says if you get a notice about being taken to court, get free legal advice straight away. Ignoring it risks a default judgment.
• Cutting off every channel. Ask for a different method, not none. The guideline’s rule on stopping a method assumes you have given another one.
• Mixing contact with a dispute. If you think the debt is not yours, is wrong or is already paid, you can ask who owns it, how much is owed and how it was calculated. Moneysmart also says an unsecured debt can be disputed where it is more than 6 years (3 in the Northern Territory) since your last payment or acknowledgment and there is no court judgment. Claim Done has a separate statute-barred debt letter for that situation.
• Not keeping records. Without dates and times, the pattern is hard to show.

Put your limits in writing today. Claim Done drafts your stop-contact letter for A$29, ready to download and send.