It all starts with your Bank - Once you stop making payments - the bank will try to make contact with you through letters and phone calls for around 3 Months in some cases 6 months, If they cannot make contact with you they will at this time send it off to debt collection agency and will probably but not always default your credit file.
The Debtcollector The first contact is normally a letter demanding payment, then around 1 week after the letter has gone out you can expect a phone call from them.
Stage 1. - I would at this time send them a letter disputing the debt and requesting the following documents - Make sure you send this certified mail - requiring a signature at the other end - as evidence it was received.! VERY IMPORTANT.
- Disputing the debt and requesting these documents is the Key to get out of this debt - as it now forces the debt collector to cease all collection of the debt until they can provide these documents
- Credit contract
- original Credit application
- Loan notes made by Banker at the time of loan application
- A list of assets and liabilities/Living expense used to calculate loan was given under responsible lending practices ( Must have a positive service calculation attached!) with serving calculator used attached
Stage 2. - If you recieve any more phone calls or letter from them requesting money after you have sent this certfied document request - And they have still not sent you the required documents you require - you should now make a formal complaint to their External dispute resolution scheme, the Australian Financial Complaints Authority (AFCA).
Stage 3. - At this point there is no reason to have anymore communication with the debt collector - Simply send them a CEASE AND DESIST LETTER CLICK HERE - this will now stop any more communication with the debt collector to you or your family. The debt collector now has 1 option to try and Sue you - and assuming they have not been able to provide all the requested documents they will not bother to sue you and simply walk away from this debt. less then 1% of debt collectors Sue especially if you put up a fight like you should be doing by following my steps, they Know in court they would Loss especially if the carnt provide a credit contract - No credit contract equals No debt!