NSW Credit Card - Can Bank Summon Me to Court Whilst Away?

[Pavol]

Hi,

I was an international student in Australia. I used a credit card, on which I owe almost $8000 now. I had all intentions to pay it off, but my business took a hit. My business is online and I live in a country where I can't find a job due to my visa. I was paying what I could, but now I can't even do that.

I asked the bank to freeze the interest - which is huge, so I can pay off the balance over time. They refused and I feel like my only option is simply not to pay.

My question is - can they summon me to court while they know I'm not in Australia nor poses visa that would allow me to go there? To get judgment by default?

Thank you

 

[Victoria S]

Hi Pavol,

In order to get default judgement against you, they would need to institute court proceedings in Australia which would require them to serve you with any initiating application or proceedings. They must be able to prove that they have either served you or made a proper effort to serve you with the court proceedings before they can obtain default judgement.

Sometimes an order for substituted service can be obtained whereby they serve you by means other than by personal service which is required by the rules. If they know you are not in Australia it may make them less likely to pursue it, as it will likely cost them more to recover their money, and they are likely aware they will get nothing out of you anyway. But I can't of course say either way whether and how they will decide to pursue their debt.

 

[Hayder Shkara]

My question is - can they summon me to court while they know I'm not in Australia nor poses visa that would allow me to go there? To get judgment by default?

Yes they can. I also think that the debt is a sizable amount that they will actually try and recover it.