Kelvin Thomson (Wills, Australian Labor Party) Share this | Link to this | Hansard source

I want to bring to the attention of the House the issue of debt collection and the lack of controls in Victoria. I was surprised to read a report in the HeraldSun of 14 May that debt collectors are not required to be registered in the state of Victoria, and I was alarmed that it has been alleged by police that the Visy packaging company is using the Hells Angels to collect bad debts.

As reported, the Consumer Action Law Centre, the Australian Institute of Credit Management and the Collection House have all made submissions to the Department of Justice for the practice to be licensed. I would hope that the Victorian government does not dither on this issue and takes immediate action to introduce adequate protective measures.

I understand Victoria is the only state in the Commonwealth not to have legislation controlling this practice. Members would be aware that without adequate safeguards the practice of collecting debts could lead to inappropriate methods of collection and possible injury to those who owe a debt by undesirable elements in our community. I would ask that the Victorian government, as a matter of urgency, take steps to introduce safeguards and controls before a serious incident occurs. Adequate licensing legislation will protect the consumer and weed out the undesirables to prevent them from gaining a permanent foothold in this industry. A rigorous procedure is needed before a licence to collect debts is issued. It is most important that governments protect the rights of consumers from persons who would exploit this situation.