NSW Loan and Debt Collection

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Thomas L

Active Member
3 April 2019
Sydney, NSW
Good Morning All,

I had a loan that was paid in full, however, several months later, I was being harassed by a debt collection company.

It was my understanding that the loan had been paid in full, based on a payment of $9,870.00 on 8 March 2018. This amount was provided to me by the finance provider on the same date.

It wasn't until a phone call from M.G of Credit Corp Financial Services on 1 August 2018, at approx. 11:41am that I was made aware the account was still outstanding. Dates between correspondence calculate to 4 months and 25 days.

During my phone call with M.G, I provided receipts by email on 1st August 2018. My last email from M.G was on the 6th of September 2018.

On December 11th 2018, I received an email from A.P of Credit Corp financial services advising that their bank, Westpac, has been unable to locate the payment in the accounts and that I will need to lodge a trace with my bank, Bank Australia, to locate the payment. Dates between correspondence calculate to 3 months and 6 days.

I responded to A.P on the 15th of December 2018 advising I will begin the trace. In response to my email, on December 17th 2018, A.P advised that he would isolate my account so that there would be no adverse actions on my credit file.

On 9 January 2019, I contacted A.P with written correspondence from Bank Australia. In this email, I expressed concerned about the length of time the investigation is taking. In this email, I offered to make instalments while the bank investigates and locates the payment.

A.P responded on January 14th 2019 giving me advice on the BPay trace, but not accepting my offer to make payments on the account.

Further correspondence with the bank was communicated to T.S of Credit Corp financial services.

T.S contacted me by email on the 25th of February 2019 to enquire the status of the bank BPAY trace. Dates between correspondence calculate to 1 month and 12 days.

I responded on February 27th, March 11th, and March 12th.

T.S responded on March 13th declining my offer to pay the lump sum of $9,870.00 which was refunded to me by the bank.

Since the email from T.S on March 13th 2019, I had not heard anything from Credit Corp financial services and put the money into a term deposit with my bank pending resolution.

On 5th August 2019, I spoke with H.R of Credit Corp financial services over 2 phone calls at approx. 10:45am. and approx. 11:12am. We discussed the background of this account and I agreed to supply information that I have on my end.

This information includes correspondence with Credit Corp financial services, bank records, other communication and any relevant information. During this phone call. H.R advised that the account has been backdated to accrue interest from March 2018, including late fees and penalties, totalling approx. $19,500. H.R requested I offer a figure that could be approved by a manager so we can settle the account once and for all. H.R indicated an amount of at least $15000+ would be needed to secure an approval. I advised that I don't believe adding interest is fair as there have been faults on all sides, however, in good faith, I told H.R that I will review my budget and provide him with a realistic amount I can pay in one sum. Dates between correspondence calculate to 4 months and 24 days.

I got back to H.R by email on the 15th of August 2019 advising that the added interest was unreasonable and I will only pay what I originally owed. I heard nothing from him and instead received a default notice by post.

A repo person showed up on my doorstep this morning, however, the vehicle associated with the loan was released from security months ago and I had sold it. I showed him the PPSR search certificate that I purchased before selling it to show the repo agent the vehicle was clear. He was confused and asked me for the information of who I sold it to. I refused him and asked him politely to leave my property which he obliged.

What can I do? The original loan was $14000 which I paid in full. Now they want me to pay another $19,500. Surely this can't be legal??

Any advice would be appreciated.


Well-Known Member
16 April 2017
I had a loan that was paid in full, however, several months later, I was being harassed by a debt collection company.

It was my understanding that the loan had been paid in full, based on a payment of $9,870.00 on 8 March 2018. This amount was provided to me by the finance provider on the same date.
You post has too many details that it's very hard to keep track of the information and also you failed to mention about invoices!
  • You had/have a loan that was paid in full, how much was the loan, how much you paid and to what kind of financial institution?
  • It was your understanding that you paid the loan, any receipt invoice to back this statement?
You need to check the documents and start from there to build your case.


Well-Known Member
25 July 2018
Let's cut this down a bit and confirm a few things, because I'm a little confused about something...

1. The loan was with a finance company, yes?
2. You had $9,870 owing and you paid this in a lump sum on 8 March 2018. Is that a payout figure you obtained from the finance company?
3. Why the lump sum? Were you behind on payments, or was the account up to date and you just wanted to get rid of it?
4. You paid using BPay but the finance company never received the payment, correct?
5. You had your bank trace the money... Did they find it and return it to you, or is the money in the term deposit other money you had?
6. Have you had any contact from or with the finance company at all since making the original payment on 8 March 2018?
7. Depending on your answer to #5, as of now (when you reply to this), has the bank figured out what happened yet? If so, where's the money now?

Let's stop there for now, because quite frankly, there's a few things here that don't make sense yet.