Letter of Demand - What To Do
If you are incessantly receiving a letter of demand… · get in contact with the original creditors and ask that they check their records, and amend them.
You may have overlooked a debt… · contact the creditor to tell them you do not believe you owe the money and request copies of documents and information about the debt
· If they do not arrive, get in contact with the original creditor for the details in the letter of demand.
If the debt has been there for more than six years… · do not make any payments until you get advice from a financial counselor or community legal centre (you may not have to repay a debt older than six years), and do not admit to the creditor that you owe the money.
If you actually owe the money but cannot pay… ·Keeping the lines of communication open. It may be possible to come to an agreement to make regular repayments that you can afford (even if the collector says they will not accept anything other than the full amount)
· Never be forced to borrow more money (even if it’s in the Letter of Demand)
· get advice from a financial counselor, as there are usually other ways to deal with debt problems.
If you have been threatened with seizure of your property… · debt collectors have imposed limits in the property they can seize even after court action
· Even when a creditor gets a court judgment, only the Sheriff can seize your property
If you receive legal documents… · it is recommended that you get legal advice from a fiduciary counselor or community legal centre immediately. You will usually only have 3 weeks to lodge a defense. If you do not to do this, the creditor can enter judgment against you.
Are debt collectors harassing you? · Debt collectors possess the legal right to take any reasonable acts to chase a debt but there are limits to how far they can go. Victoria’s Fair Trading Act bans undue harassment and coercion.