The Debt Collection Guideline: What It Is & Why It Matters
Australia's regulators publish a joint debt collection guideline that sets the practical benchmark for fair, lawful contact with people who owe money.
In this explainer
- Explain what the joint debt collection guideline is and who issues it
- Summarise the broad conduct principles it describes
- Show why the guideline matters when you choose a recovery partner
- List practical questions to ask a provider about it
- Describe how Merion operates in line with the guideline
6 min
What it is
The debt collection guideline is joint guidance published by Australia's consumer and corporate regulators to describe how collection should be carried out. It is widely treated as the practical benchmark for fair conduct, and it sits alongside — not instead of — the laws that govern collection, privacy, and consumer protection.
The guideline is written in plain terms so that both businesses and the people they contact can understand what reasonable, lawful collection looks like. Because it is updated from time to time, you should always read the current version from the regulators directly rather than relying on a summary.
Key requirements
At a general level, the guideline asks anyone collecting a debt to:
- be honest and accurate about the debt, the amount, and who is contacting the person;
- contact people only at reasonable times and at a reasonable frequency;
- avoid harassment, coercion, threats, undue pressure, or misleading conduct;
- respect privacy and disclose information only where it is appropriate to do so;
- deal properly with disputes, financial hardship, and vulnerability.
The unifying idea is simple: tell the truth and treat people fairly while still pursuing a genuine debt.
Why it matters for debt recovery
When you refer accounts to a collection partner, that partner contacts your customers in your name and on your behalf. Conduct that breaches the guideline can lead to complaints, regulator attention, and lasting damage to your brand and customer relationships. A partner that follows the guideline protects your reputation as well as the customer.
The guideline also helps you compare providers on something concrete. A firm that can describe how its day-to-day practice maps to the guideline is easier to trust than one that talks only about recovery rates.
What to ask a provider
Useful questions for a prospective partner include: how do your contact scripts and letters reflect the guideline? How do you control contact frequency and timing? How are staff trained on the conduct principles, and how often? How do you handle disputes, hardship, and vulnerability? Can you show records that demonstrate compliant conduct over time?
How Merion approaches it
Merion operates in line with the conduct principles in the joint guideline. We communicate factually, contact people at reasonable times, and never rely on pressure or threats. Because we work on a commission-only basis, our incentive is a fair, lasting resolution rather than volume of contact. You can read more about our standards in the Merion Trust Centre. For the authoritative detail, always read the regulators' current guideline.
This page is general information only and is not legal advice.
Key takeaways
- The joint guideline is the practical benchmark for fair collection conduct
- Core principles: honesty, reasonable contact, no harassment, respect for privacy and hardship
- A guideline-aligned partner protects your brand and your customer relationships
- Always read the regulators' current version rather than a summary
Frequently asked questions
Is the guideline the same as the law?
No. It explains, in plain terms, how the relevant laws are expected to be applied. The underlying laws still govern; the guideline helps everyone understand expectations. Verify the current version with the regulators.
Who publishes it?
It is published jointly by Australia's consumer and corporate regulators. For the authoritative text and any updates, refer to their official publications.
Does Merion follow it?
Merion operates in line with the guideline's conduct principles — honest, reasonable contact, no harassment, and proper handling of disputes and hardship.
Security and compliance you can verify
Merion handles every account on the facts, within the rules, and with data protected by design. Ask us anything.