Do Debt Collectors Need A Licence?
Whether a licence is required depends on the activities involved and the state or territory — and not every activity calls for one.
In this answer
- Explain that licensing depends on activity and location
- Describe, conceptually, why some activities need a licence
- Clarify Merion's position without inventing specifics
- Reassure customers about legitimacy checks
- Direct readers to authoritative sources
5 min
It depends on the activity
In Australia, whether a debt collector needs a licence depends on what they do and where they operate. Requirements differ between states and territories, and not every collection activity triggers a licensing requirement.
Some activities — particularly certain field-agent functions — are regulated more closely at the state level, while office-based recovery may sit under different arrangements.
Why licences exist
Licensing schemes generally exist to set minimum standards and provide accountability for higher-risk activities. They are one tool among several, alongside national guidance, consumer law, and dispute resolution schemes, that together keep the industry honest.
Because the rules vary and change, customers should rely on the relevant state or territory authority for the authoritative position rather than on general summaries.
Merion's position
Merion operates as an office-based recovery service and does not engage in field-agent activities — we do not send agents to homes or workplaces. As reflected in our public disclosures, this means we are not required to hold a commercial agent licence in the states and territory we serve, and our operations comply with the relevant regulations.
You can read our public stance in our financial disclosures.
Checking legitimacy
Licensing is only one signal of legitimacy. Equally important is how a firm behaves: honest identification, accurate information, fair contact, and proper handling of disputes.
If you want to confirm who you are dealing with, you can verify us through our help centre. Read more in our guide on spotting a legitimate collector.
This page is general information only and is not legal advice.
Key takeaways
- Licensing depends on the activities involved and the state or territory
- Not every collection activity requires a licence
- Merion is office-based and does not engage in field-agent activities
- Behaviour, not just licensing, signals a legitimate firm
- Rely on the relevant state or territory authority for the detail
Frequently asked questions
Does every debt collector need a licence?
Not necessarily. It depends on the activities and the state or territory. Some activities require a licence while others may not.
Does Merion hold a commercial agent licence?
Merion is office-based and does not engage in field-agent activities, so it is not required to hold a commercial agent licence in the areas it serves. See our financial disclosures.
How else can I tell a collector is legitimate?
Look at behaviour: clear identification, accurate information, fair contact, and proper handling of disputes. You can also verify us through our help centre.
Fair, professional, compliant — always
Merion handles every account on the facts, with respect, and within the rules. Questions? We're happy to help.