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What is a debt collector?

What is a debt collector?

A debt collector is a person or organisation whose job is to cajole consumers into paying overdue debts.

Sometimes, the debt collector will insist on immediate repayment of the entire debt. At other times, the debt collector will discuss a plan involving staggered repayments and/or a write-off of part of the debt.

Whatever approach the debt collector takes, it’s important to remember that you have rights and that the debt collection industry is highly regulated.

How they can contact you

There are strict rules around how or when debt collectors can contact consumers.

According to the rules, debt collectors can’t:

  • Contact you on national public holidays, whether by phone, email, social media or face to face
  • Contact you by email or social media unless they’re reasonably sure your account isn’t shared with anyone else and their message won’t be seen by anyone else
  • Phone you more than three times per week
  • Phone you more than 10 times per month
  • Phone you before 7.30am and after 9.00pm on weekdays
  • Phone you before 9.00am and after 9.00pm on weekdays
  • Visit you in person if repayments arrangements can be worked out by phone, email or letter
  • Visit you before 9.00am and after 9.00pm (assuming phone, email and letter have failed)
  • Visit you more than once per month

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How they can interact with you

There are also strict rules around how debt collectors must act when they do engage with you, whether by phone, email, social media or face to face.

Debt collectors are forbidden from doing the following:

  • Verbally abusing you
  • Threatening to harm you or anyone else
  • Threatening to damage your property
  • Blocking access to your property
  • Refusing to leave your property when asked (unless they have a court order)
  • Making false statements about your debts
  • Making false statements about the consequences of not paying your debts
  • Pretending to be, or pretending to act for, a solicitor, court or government body

Your responsibilities

Although consumers are legally entitled to be treated with respect, and are entitled to complain if debt collectors overstep the mark, consumers also have certain obligations.

For example, consumers must promptly respond to any phone calls, emails or social media messages they receive from debt collectors.

They must also tell the truth regarding their financial situation and must tell debt collectors when their contact details change.

Consumers must also agree to a repayment plan, if they can afford it.

For more information, please visit ASIC’s official debt collection page.

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Learn more about credit cards

How to get rid of credit card debt

  1. Calculate your debt. Credit card calculators make it easy to determine the repayments required to chip away at your debt in the shortest timeframe possible for your budget.
  2. Repayment plans. Take some time to formulate a credit repayment plan. Consider increasing your income, scaling back your lifestyle or refinancing.
  3. Talk to your credit provider. If you’re still struggling with your debt, give your credit provider a call. You may be able to come to a new arrangement.

How to pay a credit card from another bank

Paying or transferring debt from one lender to the other is called a balance transfer. This involves transferring part or all of the debt from a credit card with one lender to a credit card with another. As part of the process, your new lender will pay out the old lender, so that you now owe the same amount of money but to a new institution.

Many credit card providers offer an interest-free period on balance transfers to help new applicants better handle their debt. During this period, cardholders are not required to pay interest on the debt they brought over from the other card. This can be a great opportunity for consumers to pay off credit card debt with no interest. There are often fees associated with balance transfers; normally, these are a percentage of the amount transferred.

So make sure you read the terms and conditions of the card before transferring any debt across.

What is a balance transfer credit card?

A balance transfer credit card lets you transfer your debt balance from one credit card to another. A balance transfer credit card generally has a 0 per cent interest rate for a set period of time. When you roll your debt balance over to a new credit card, you’ll be able to take advantage of the interest-free period to pay your credit card debt off faster without accruing additional interest charges. If your application is approved, the provider will pay out your old credit card and transfer your debt balance over to the new card. 

How does the ANZ credit card instalment plan work?

While you usually need to settle all or part of your credit card dues at the end of your statement period, some credit cards afford you the option of setting up instalment plans. This allows you to settle your credit card debt at a pace that's more convenient for you, paying a fixed amount over a fixed period, thus making it easier to budget your repayments every month.

With the ANZ credit card instalment plan, you can set up a structured repayment schedule for part or all of your balance, or even for specific purchases over a certain value.

Some of the benefits of instalment repayment include: 

  • Structured repayments: You’ll have a fixed sum to pay each month.
  • Easier to budget: A fixed repayment sum makes it easier to make your monthly budget.
  • Account benefits: You might also get benefits such as discounted interest rates or debt-tracking tools.

There are disadvantages of opting for instalment repayment, however, and they include:

  • Less flexibility: You will not be able to pay a smaller amount once you set an instalment plan.
  • Different interest charges: In case the instalment plan only covers part of the balance, different interest charges could apply, making it challenging to budget.
  • Additional fees: You might have to pay fees or penalty charges in case of missed payments.

Are credit checks mandatory?

In Australia it is impossible to get a credit card without the provider performing a credit check first. This is for your benefit, as it helps to prevent you from falling into avoidable debt.

Which credit card has the highest annual percentage rate?

The credit card market changes all the time, so the credit card with the highest annual percentage rate is also liable to change.

Keep in mind that credit card interest rates are expressed as a yearly rate, or annual percentage rate (APR). A low APR is generally good but also consider:

  • There can be different APR's for each feature of the card (e.g. purchases may have an APR of 14 per cent, while cash advances on same card could have an APR of 17 per cent.
  • Credit cards with a variable rate can change throughout the year, affecting your APR, so check the full details.
  • If you pay your balance in full every month, having the lowest APR is not as important as the other fees associated with the card. However, if you carry a balance from month to month, then you want the lowest APR possible.

What should you do if your credit card is compromised?

Credit card fraud is a serious problem. If your credit card is compromised and you’re wondering what to do, here are a few precautionary steps to take.

Contact you credit provider – Get in touch will your credit card provider. If you feel your card has been compromised, you should be able to lock or block it.

Monitor your accounts – Keep an eye on your credit card accounts. Any unauthorised transactions could be a sign your credit card has been compromised.

Check your credit rating – It’s also important to check your credit rating, to ensure you’re not a victim of identity theft or some other financial mischief.

How can I get a Woolworths store card credit limit increase?

If you are looking to increase the credit limit on your Woolworths card, you can call 1300 101 234 to make an application. You will need to have held your Woolworths credit card account for at least six months before asking to increase your limit. 

As with most credit limit increase applications, your financial situation and spending history will be reviewed in order to assess whether your new requested credit limit is appropriate. After the assessment, Woolworths will let you know whether or not you’ve been approved. 

 

How do I file a Virgin Money credit card insurance claim?

To make a claim, you can either call Allianz Global Assist at 1800 072 791 or visit their claims page. If you’re making a claim related to any travel-related complimentary insurance, such as international travel or transit accident insurance, you may need to visit their travel claims website. Again, for filing a claim while travelling overseas, you can call Allianz at +61 7 3305 7499.

Before filing your claim, consider checking which complimentary insurances are available with your Virgin Money credit card. Customers who own a ‘no annual fee’ or ‘low rate’ credit card don’t get these benefits, while some other credit cards only come with guaranteed pricing and transit accident insurance.

Remember that you’ll need to submit proof that your credit card offers the complimentary insurance benefit which you are claiming. You can read the credit card complimentary insurance terms and conditions for details regarding the benefits available on your credit card.

Do I get HSBC credit card insurance on purchases I make?

As an HSBC credit card (HSBC Platinum, HSBC Platinum Qantas and HSBC Premier World) cardholder, you may be entitled to complimentary international and domestic travel insurance. This HSBC credit card insurance covers you for hospital stays and medical expenses, flight cancellations or delays, as well as lost luggage or personal items.

To be eligible for the insurance, you should have paid for at least 90 per cent of your overseas return travel ticket with your HSBC credit card. The cover is automatically activated without a need to contact HSBC. However, it’s always best to let your card issuer know when you travel overseas. If you have pre-existing medical conditions, you’ll need to contact Allianz directly to organise cover for these as they aren’t covered by the insurance. You can call Allianz on 1800 648 093.

The complimentary international travel insurance that comes with your HSBC Platinum credit card is valid for up to four months from the date of your departure from Australia. Your HSBC credit card insurance cover also covers your spouse and dependent children if 90 per cent of their travel ticket is purchased using your HSBC card.

 

How can I transfer money from a credit card to a bank account in ANZ?

The process to transfer money from credit card to a bank account for ANZ customers can be made online via the mobile app or over the phone. Here are the necessary steps for the transfer:

Call the ANZ general enquiries number on 132273 and verify your account information. Request to transfer the desired amount. You’ll then have to provide the bank account number and the BSB details to complete the transfer.

Log in to your online banking or mobile banking app and select the “transfer” option. Provide the bank account number, BSB details, and the amount you want to transfer. Confirm the details for ANZ to  transfer money from credit card to a bank account.

What to consider before transferring money from your credit card to your bank account in Citibank?

You can transfer money from a Citibank credit card to a bank account depending on the available limit of each. The process is known as a cash advance transaction, and Citibank should allow you to transfer some portion of the total credit limit.

Transferring funds from a credit card to a bank account is likely to attract additional charges, so please consider the following potential costs:

  • A cash advance fee, which is a per cent of the total transfer amount
  • A 2 per cent transaction fee when you transfer money from a Citibank credit card to a bank account
  • Cash advance interest rate applicable on the transfer amount without any interest-free period.

To learn more about such transfers, you can contact the bank via the online service desk, email, or by calling 13 CITI (13 24 84).

Who is eligible for Bankwest credit card insurance

Bankwest offers complimentary overseas travel insurance to its Gold MasterCard, Platinum MasterCard and World MasterCard cardholders. Eligible Gold and Platinum MasterCard customers are covered for up to 31 consecutive days of travel, while the World MasterCard holders are covered for six successive months.

To receive the complimentary Bankwest credit card insurance, cardholders need to:

  • Be under 80 years old
  • Be travelling to a foreign destination
  • Not have a cancelled or suspended card.


The complimentary insurance is also available to spouses and children if they travel with you for the entire period. The level of cover depends on the type of card and its  credit limit. Some of the standard types of cover include:

  • Overseas emergency medical assistance
  • Personal liability
  • Accidental demise
  • Baggage and personal goods.


It’s important to remember that pre-existing conditions are not covered by the complimentary Bankwest credit card insurance. Other terms and conditions also apply. 

If you are an eligible cardholder and need to make a claim, it can either be done online or by calling +612 8907 5615. 

How do I increase my Virgin credit card limit?

If you’re a Virgin Money cardholder and you’re looking at increasing your credit card limit, the first step is to get in touch with Virgin’s credit team on 13 37 39. 

Once you request a Virgin Money credit card limit increase, the lender will do an assessment of your current financial position to make sure you can repay the credit. Virgin Money will typically take 7 to 10 working days to complete this process.

Virgin Money has strict terms around credit increases. To be eligible, you must have opened your account no less than nine months before making the application. Also, at least six months must have passed since your last credit limit increase. The maximum increase you can expect will be 50 per cent of your existing credit limit.