Debt collecting and process serving breaches and penalties
Unlicensed work
Unlicensed debt collecting, repossession and process serving work are against the law.
| Offence | Maximum penalty |
|---|---|
Working unlicensed | $30,960 or 2 years imprisonment |
| Employing an unlicensed or unregistered person | $30,960 |
Selling, hiring out or lending a licence or registration | $30,960 or 2 years imprisonment |
Buying, borrowing or hiring a licence or registration | $30,960 or 2 years imprisonment |
Not having an individual licensee in charge of regulated business (corporate licensees) | $154,800 |
Dealing with licences
Serious offences
We will cancel your licence if you’re convicted of a serious offence. You will have 14 days to return your licence to us.
The maximum fine for failing to do so is $15,480.
Change of details
You must advise us in writing within 14 days about any changes to:
- personal details
- circumstances relating to your licence.
The maximum fine for failing to do so is $15,480.
You must also advise us within 14 days if you have:
- changed principal place of business
- opened or closed a place of business.
The maximum fine for failing to do so is $30,960.
Showing a licence on request
| Offence | Maximum penalty |
|---|---|
Not showing an inspector your licence, or a copy of any staff member’s licence or registration, on their request | $30,960 |
Not showing a client, debtor or other party (except an inspector) your licence, or a copy of any other staff member's licence or registration, on their request | $30,960 |
Substitute licensee
You must follow the rules when appointing a substitute licensee. If you do not, you risk being fined.
| Offence | Maximum penalty |
|---|---|
Not having the consent and evidence of appointment at the office | $15,480 |
Not lodging extension of appointment substitute licence for more than 30 days | $30,960 |
Acting as licensee while a substitute is appointed | $30,960 |
Person in charge
| Offence | Maximum penalty |
|---|---|
Not having a licensee in charge of place of business | $30,960 |
Employing an executive officer of the corporation to act as a subagent | $154,800 |
Documentation
You must make sure that you complete all of your documents correctly. For example, you must:
- be appointed in writing to act as an agent
- give a copy of the appointment to the client.
If you do not, you risk a maximum fine of $30,960.00.
Trust account offences
It is in an offence to steal or misuse trust monies. You risk a fine and imprisonment if you break the law.
| Offence | Maximum penalty |
|---|---|
Wrongful conversion and false accounts | $154,800 |
Unauthorised use of trust account | $30,960 |
Trust monies are not banked immediately (to trust account) | $30,960 |
Trust monies are not banked to a trust account | $30,960 |
Licensee does not account to client | $30,960 |
Audit reports
| Offence | Maximum penalty |
|---|---|
Licensee doesn’t appoint an auditor | $30,960 |
Licensee doesn’t lodge audit report within time limit | $30,960 |
Licensee doesn’t lodge audit on ceasing to be licensee or within 2 months of carrying on business | $30,960 |
Auditors
| Offence | Maximum penalty |
|---|---|
Auditor does not file advice of irregularities to Chief Executive | $30,960 |
Auditor fails to notify Chief Executive when denied access to other records | $30,960 |
Auditor fails to supply report to licensee | $30,960 |
Inspector's powers
Inspectors have the legal authority to make sure that you don’t break the law. You must follow their lawful directions, or you risk a fine.
| Offence | Maximum penalty |
|---|---|
Obstructing an inspector or failing to produce documents or provide information to an inspector | $30,960 or 1 year imprisonment |
Failing to give name and address to an inspector | $7,740 |
Enforceable undertaking
An enforceable undertaking is:
- a written promise by a business not to keep breaking the law
- an alternative to court action.
Find out more about enforceable undertakings