Recovery of costs with 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
21 October 2019
1
0
1
The Victorian consumer affairs website states that a debt collector cannot recover costs associated with the recovery of the debt. You can if there is a term in the agreement but this does not apply if the debt was incurred for personal purposes. Thus I would interpret this that a medical practice could not add recovery costs onto a bill.

However I just saw a form at a local medical practice where they clear state that they intend to recover costs if a bill is not paid and they have to resort to a collection service. Furthermore after 45 days they will add a $15 a month hold fee. Is what the medical practice doing, consistent with the Victorian consumer statute.