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QLD Debt Collectors in Australia Collecting New Zealand Debt - Legal?

Discussion in 'Debt and Bankruptcy Law Forum' started by mr_pssshhhhh, 3 November 2015.

  1. mr_pssshhhhh

    mr_pssshhhhh Member

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    I have a debt in New Zealand that is now being collected by the debt collectors, ARL Collect Limited here in Australia.

    My question is, is it legal for a New Zealand debt to be collected by an Australian entity?

    When I was first contacted by ARL to begin paying the debt to them, I tried to continue paying my NZ debt direct to the original creditor, however ARL began threatening to list me as defaulting on the debt here in Australia. Is this proper procedure?

    I did miss a few payments migrating to Australia.
     
  2. Sophea

    Sophea Well-Known Member

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    Hi mr_pssshhhhh,

    Yes it is legal for a NZ debt to be collected in Australia. There is a transtasman court deal that makes it possible for a creditor in either country to collect a debt from a debtor in another. They likely have purchased the debt from the original creditor in NZ, so they own the debt - you now have no debt to the NZ creditor you owe it to ARL. Therefore you should try to get back any payments you made to the original creditor in NZ as it won't come off your debt.
     
    mr_pssshhhhh likes this.
  3. mr_pssshhhhh

    mr_pssshhhhh Member

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    Thanks @Sophea.
    So they could definitely list my name as defaulting on this debt here in Australia if they wanted to?
    I am guessing it would be classed as an entirely new debt here.
     
  4. Sophea

    Sophea Well-Known Member

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    I'm not 100% sure but I would assume so.
     
  5. Mike Henry

    Mike Henry Member

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    I'm in a similar situation. I moved to Australia in 2007 and when I moved I had credit card debt from a bank. I was unable to pay them due to my financial situation. Now they are sending me emails and calling me about this debt.

    My question is, can they place NZ credit card debt on my Australia credit file?
     
  6. Sophea

    Sophea Well-Known Member

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    Mike,

    As I understand it, your credit file is actually maintained by the same entity in both Australia and NZ so you can be declined for a loan in Australia for your NZ debts anyway. It's not like you start fresh when you move to Australia.
     

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