Recovery of costs with debt collection

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21 October 2019
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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.