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Debt Collection Fees

Have You Been Charged Debt Collection FEES?

Are they valid?

Currently the NZ Commerce commission is keen to receive complaints where debtors have a reasonable expectation they have been charged debt collection fees and charges which are not valid.

This is especially relevant where a debt has been referred to a collection company and an invoice or collection letter is created and addressed to you the debtor showing that you are required to pay the collection company a large fee..

It is of special intrest if you have a case where you have been charged a fee and have been told that you are required to pay the fees, or failure to pay the outstanding amount may result in legal action.
The commerce commission is keen to investigate matters such as this, and require the following to be forwarded to them in the form of a complaint.

  • Copies of demand Letters
  • Copy of original Credit Contract
  • Copies of communications from Creditor
  • Copies of communications from Debt Collector

Please attach the above documentation and a summary of your complaint, outlining where you feel that debt collection charges are not warranted

Once the above list is compiled please forward

For further information please refer to the commerce commission website Commerce Commission - Debt collecting

Debt Collection Terms?

!!!! CAUTION !!!!!

Dont accept terms you dont have to!

It has come to the attention of the webhost here that many individuals are being bullied into accepting terms which are not a part of the original credit contract.
You do not have to accept terms from any debt collector for any reason, especially if they are harsh, oppressive, or particularly one sided

The following is an except from a letter fromm one such collector who says that merely paying the account will constitute acceptance and open the debtor up to liability for more debt
In this case the debtor needs to advise the collector that they cannot accept the terms as outlined, and immediately refer the case to the commerce commmission for further investigation

Debt Terms

Caution - If you have the above or similar, pass directly to the commerce commission
If a debt collector (collection agent) states that you must pay and accept their terms or legal action will ensue, do the following)

  • 1/ Note the time of the call
  • 2/ Note who you are speaking to
  • 3/ Send a copy of the following to the commerce commission to investigate
A copy of the original demand letter from the collector
A copy of the agreement letter that states that you accept their terms if you pay.
Any other letters or e-mails that state failure to pay may result in affect your ability to obtain credit, or any other 'threat style letters', which have a 'do this or else' type of statement.

Forward a copy of the above to the commerce commission for investigation into the acts of the creditor and their agent (in New Zealand as in many other countries the acts of the Agent are considered to be acts of the principal unless a copy of the agency agreement is presented). This makes the creditor liable (under apparent authority) for the acts of their debt collector, unless a copy of the agency agreement is provided which outlines what authority the Creditor has given the agent.

for more information see here