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Ask Leon Your Own Question
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44660
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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My son has been contacted by a credit collection company.

Customer Question

My son has been contacted by a credit collection company. They say is will cost hundreds of dollars to provide documentation to prove that the amounts are owing because they supposedly date back to 2004. My son's partner at the time used his credit cards to rack up a lot of debt in his name which he had no choice but to consolidate into a loan to pay the debts out. Now he gets this one. Should he have to pay to obtain documents of proof? We are concerned there is a rort going on as it is with the same company that one of the previous debts was with. Any help will be much appreciated.
Submitted: 4 years ago.
Category: Australia Law
Expert:  Leon replied 4 years ago.
Good Afternoon

Thank you for your question. To Introduce myself I am a sydney based Solicitor and will do my best to provide you with relevant information to assist you.

That is rubbish. Who do they say the money is owing to?

Does he agree he had a card with the creditor?

Customer: replied 4 years ago.

He and his partner made purchases with Harvey Norman and it was funded by GE Finance Australasia. His partner managed all the household bills as she was a bookkeeper by trade. Unbeknowns to Jye, there were many bills she didn't pay and lots of debts she racked up without his knowledge. Apparently, GE Finance has been taken over by a company called Credit Corp who operate out of Sydney. They say that it will cost too much to dig out all of the archived documents but will get hold of a final statement. The debt was apparently $9,500 and has now reached $20,000 plus with so called accrued interest. Unfortunately, we paid $1,500 to stop any further interest accruing but now believe we have been taken for a ride. What do you suggest we do? Thank you.

Expert:  Leon replied 4 years ago.
Good Afternoon

Was it in both their names?

They should be able to get you the details and if they cannot prove it then they would not be successful in any court case.

Customer: replied 4 years ago.

Unfortunately, my son signed the original document for the purchase. He doesn't remember a store card being issued. Should he have to pay for the search of the archives to prove the amount owing? And, the company is charging more than $400 a month in so called interest on the supposed outstanding debt? Thank you for your help with this.

Expert:  Leon replied 4 years ago.
Good Morning

If he is the applicant then he is liable for the debt as he authorised her to use the card.

He can try and negotiate a settlement with them if he can raise some money and pay a lump sum. Alternative he can consider bankruptcy and the debt will be wiped.

Has he tried to work something out with them?

Here is some information about bankruptcy for you.
Customer: replied 4 years ago.

At the moment the debt is heresay. Do we have to pay to have all statements regarding supposed expenditure retrieved from archives, as it dates back to 2004. And, how can he protect himself in the future from her racking up any further debts in his name? Thank you.

Expert:  Leon replied 4 years ago.
Good Morning,

Because he confirms he made the application the only way you can argue easy if they cannot provide you with details of how they calculate the total amount.

They should have records it is ridiculous to think that they have come up with a figure without records.

In relation to stopping her from spending money, he should contact the issuer of the card and cancel the card.

You right back to the credit company and advise them that until they can provide you with evidence of how they have calculated the amount outstanding you are not prepared to accept the amount owing.

If you recalls how much money he borrowed he should make an offer to pay back the amount of money and say that he disputes the rest unless they can provide him with the necessary evidence.

The letter should be headed "Without Prejudice" so that they cannot use it against him.

Is there anything else I can assist you with?
Customer: replied 4 years ago.

Should he have to pay for the records to be retrieved from archives? They say it will costs hundreds of dollars which my son will be liable to pay. Thank you

Expert:  Leon replied 4 years ago.
Good Afternoon,

Because it is not part of the legal proceedings at the moment, he may have to pay but I would negotiate with them about the amount.

Credit Corp is a collection company, your son should be going back to the initial company that issued the card and discussing it with them.

The other issue is they have his address, why have they not been sending statements to him regularly?
Customer: replied 4 years ago.

The initial company GE Finance that who provided the finance no longer exist. They have sold their so called debts to Credit Corp. Does this affect things? Should he contact the actual store where the purchases were made or would they have nothing to do with it? Thank you

Expert:  Leon replied 4 years ago.
Good Afternoon,

Credit Corp has had the debts assigned to them and they can chase it. It doesn't change anything.

He needs to contact GE money and ask them who now owns the finance business and contact them, and also when speaking to GE ask them if they have any records going back to when he took out the loan.

Credit Corp is only acting as a debt collection agency.

Once he gets the information from GE then he can see what was done and proceed from there.

is there anything else I can assist you with?
Customer: replied 4 years ago.

Thank you very much for all your assistance. It has been very helpful. With kind regards

Expert:  Leon replied 4 years ago.
Good Afternoon

You are very welcome.

I hope this is of assistance. If I have missed anything, or you have any further questions please let me know before leaving any feedback.

If I have assisted please do not forget to leave me with positive feedback.