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VIC Car Accident - Car Insurance Company Sending Debt Collectors

Discussion in 'Debt and Bankruptcy Law Forum' started by Allah Ditta, 23 July 2015.

  1. Allah Ditta

    Allah Ditta Member

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    Good day
    I was reversing my car with no car insurance and it kissed (very minor touch) the bumper of a Brand New Mercedes Benz. APPARENTLY there was no damage to the Mercedes Benz but the female owner started jumping up and down that it's a brand new car and there are scratches on the bumper.

    I took close up photos from different angles and offered her to get her car fixed but she insisted that she will report to her car insurance company.

    A week later we received a letter from her car insurance company with the reference to claim number etc. I rand up her insurance company and asked them not to get the Mercedes Benz fixed without telling me at least 2 quotes as I can get the car fixed for very cheap by my own resources.

    Now after almost 4 months, the Australian Debt Collectors have sent us a bill worth $2900 asking us to make the payment with 14 days, otherwise they will take me to court for legal action.

    My legal questions are:
    1. Can the car insurance company fix the car without sending me the quotes?
    2. Can I get the benefit from the photos taken on the spot that the damage was not worth $2900?
    3. I am on dole payment and unemployed with very low assets and no other income. Can the court order me to make the lump sum payment? Or can I request the court to relax the payment terms so I can make $10-$15 monthly payments to pay off in instalments?
    4. What is the best reply I can make to the Australian Debt Collectors. Of course I do not want to pay more than $100 which to me is still more than the damage I caused to the brand new Mercedes Benz?

    Many thanks for the forum and providing the opportunity to seek help on our issues.
     
  2. Allah Ditta

    Allah Ditta Member

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    Hello
    Anybody here?
     
  3. ixmexda

    ixmexda Active Member

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    if you dont have any property then you may be best to wait for it to go to court.
    if you only get centrelink, they can only take 5-10% of your payment, and therefore it may be uneconomical for them to persue you
    check out Asic / accc debt recovery guide for more info.
     
  4. ixmexda

    ixmexda Active Member

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    Debt collection guideline: for collectors and creditors - 14. Repayment negotiations | ACCC

    says

    54For example, s. 60(1) of the Social Security (Administration) Act 1999 (Cth) which provides that a social security payment is absolutely inalienable. Other protections include s. 12 of the Judgment Debt Recovery Act 1984 (Vic), which states that an instalment order shall not without the consent of the judgment debtor be made if the income of the judgment debtor is derived solely for a pension or other government benefits.
     
  5. Allah Ditta

    Allah Ditta Member

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    Many thanks. I am grateful.
    Regards
     

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