Debt Collection in Australia

Debt Collection in Australia

Australia and the United Kingdom have always had a healthy relationship. The 2 nations have supported one another in every way, and trade between them is beneficial to all. For instance, in 2020 the UK exported $5.18 billion worth of goods to Australia.

Despite this good relationship, there is a strong potential for debt to occur. Many UK businesses find themselves in a difficult position when they are owed money by a client in Australia. Many believe that because their debtor is literally on the other side of the world, it may not be possible to recover their money.

A professional international debt collection agency can recover money globally. Federal Management is one such agency and has successfully been enforcing debts in Australia since 2004.

Are you owed money by a non-paying client in Australia? If so, you must act as soon as possible. Whilst debt collection in Australia is more complex than local enforcement, solutions do exist. Choosing an experienced and effective debt collection agency is the best way to recover owed money.

Effective Debt Collection Process in Australia

It is true that recovering debt from someone in another country is somewhat more complicated than a local collection. After all, the people tasked with enforcing the debt must have knowledge of the country’s laws and customs regarding recovery. Whilst it is possible to learn these rules, doing so can take years.

Because of this, it is common for businesses to hire professional assistance when dealing with debt collection in Australia. Many people will choose to take legal action. This involves a solicitor enforcing the collection on your behalf, and processing it through the court system.

Whilst this can be a good solution, it is often more beneficial to instruct an international debt collection agency. An agency will provide a far more cost effective solution, as well as possess all of the necessary expertise required. Federal Management has a global network of trusted debt collection partners. Because of this, we have up to date and expert knowledge of debt collection in Australia.

This expertise is crucial to success, as there are several key differences in the way that Australia governs and regulates debt collection. For example, in the UK there is a time limitation of six years on enforcing the debt. In Australia, this time period is also six years, except for in Northern Territory where it is just three years.

As well as laws such as this, there are also the obvious factors that must be taken into account. For instance, a UK debt collector must make special allowances for Australia due to the time difference between the two countries.

Calling a debtor in Australia during their own time-zone’s reasonable hours may not line up with working hours in the UK. In some cases, debtors can be contacted during an agreed period of time. Ensuring that all enforcement tasks are done properly and appropriately is key to a successful process. A debt collection agency will take every step required, and ensure that the case is handled in the correct manner.

The Benefits of Professional Debt Collection in Australia

Recovering owed money is always a positive result for both the collectors and creditors. As well as this, a good debt collection service will ensure that the case is resolved amicably for all parties involved. For businesses, this helps to build strong relationships between a UK company and their Australian client.

Federal Management has the foremost successful record of debt collection in Australia. Our average recovery rate is 90% on all undisputed business debt. Our experts have the leading knowledge and skills required to recover a debt from overseas.

If your business is owed money by a client in Australia, speak with our friendly debt collection experts now. We will conduct a complimentary pre-action assessment, helping you to know what your options are.

Debt Collection in Australia – Frequently Asked Questions

How does debt collection work in Australia?

A professional debt collection agency will use a proven recovery process to collect a debt from Australia. Federal Management has recovered millions of pounds worth of unpaid commercial debt, and our process has a leading average recovery rate of 90% on undisputed debt.

Is debt collection legal in Australia?

Yes, debt collection is legal in Australia. Many UK companies are owed money by non-paying clients in Australia. A specialist international debt recovery service is often the best solution for recovering owed money in Australia.

How long can you be chased for a debt in Australia?

In Australia, there is a limitation period of six years for the enforcement of debt. There is an exception in Northern Territory, where the period is three years. You should always check that this information is known by the debt collection solution you choose.

What happens if you ignore debt collectors Australia?

Many debtors believe they can hide away and their debt will simply disappear. This is not true, and ignoring debt collectors will only serve to escalate the matter. A good debt collection agency will use the appropriate measures to ensure that every case is handled ethically and resolved amicably.

How much does debt collection in Australia cost?

Every case of debt recovery is unique, and as such, there is no “off-the-shelf” type price. The best way to get a price is to speak to a debt collection expert. Federal Management will provide a free pre-action assessment of your debt, as well as a no-obligation quote. Our commission rates begin from as low as 8%.