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What is debt collection?

Information about what debt collection is for civil debts in Victoria.

Debt collection is an attempt to recover money that is owed or that is alleged to be owed by a consumer to an organisation that has provided goods or services.

Consumer debts are debts owed by a person (not a company). The debt must have been incurred mostly for domestic, personal or household purposes to be protected under the Act.

See s. 3—Australian Consumer Law and Fair Trading Act 2012 (Vic)(opens in a new window).

It is not uncommon for companies to 'sell' debts to a debt dollection agency for recovery. Therefore the company trying to recover a debt may have had notihing to do with the original transaction that led to a debt.

There are the laws in Victoria to protect people from debt collection agents who break the law when trying to collect money or to repossess goods for a consumer debt.

More information


Australian Consumer Law and Fair Trading Act 2012 (Vic)

  • s. 3—states that debt includes an alleged debt, defines: engage in debt collection, and consumer debts

See Australian Consumer Law and Fair Trading Act 2012 (Vic)(opens in a new window).