CHOICE membership

Ecollect, Video Ezy debt collecting


#1

Hi all,

was contacted by a debt collection agency out of the blue stating that I owe 120 dollars for a video from video ezy that i allegedly returned late 2 years ago. This business has since closed down and it was the first time that I had heard that I had a debt. I also dispute that i even borrowed the video or returned it late. I disputed the debt and they said I could pay just 38 dollars if I pay now which i refused, as I dispute the debt .Has anybody experienced similar situation and what ended up happening?


#2

Take care Dave, not all debt collectors play by the rules when it comes to these matters. If in doubt, you can contact to the Financial Ombudsmen in the event you need to raise a dispute about the charges or the debt collection agency itself.


#3

Remember that no matter what, you can only be billed the cost to them for your breach of contract. Private companies cannot issue fines.

So if you returned it a day late, the maximum they could possibly bill you is a days hire plus a tiny admin fee. So if that $120 is not reflective of their costs they can’t charge it. It wont stop them threatening you with court though.


#4

If you didn’t borrow the video, then the whole thing may be bogus. Did you do any research on the debt collection agency; are they legitimate, or is it a scam?

Search for information based on the agency name, and ensure they are registered. All debt collectors must abide by a code of conduct which is a state by state thing. So you can search that based on where you live.

If they are legitimate, have a look at the ACCC on how to deal with debt collectors


#5

Thanks for the tips everybody. :slight_smile:


#6

You might note the financial ombudsman service morphed into

https://www.afca.org.au/

since your original post.