Financial Counsellors at UnitingCare Community (previously Lifeline Community Care Queensland) are warning people to be wary of debt collectors as they increase operations over the holiday period.

Calls to UnitingCare Community’s Financial First Aid telephone hotline have nearly doubled in the second half of 2011 with more than half of the callers facing financial stress arising from an inability to pay their bills.

UnitingCare Community’s State Financial Counselling Practice Leader Sue Hough said people receiving

“Traditionally debt collectors have been very active at this time of year to avoid the financial drought caused by holiday spending,” said Ms Hough.

“Some debt collectors are trying to get in before the credit card statements and possibly before the next round of energy or phone bills.

“Most people have limited funds available after Christmas and some families are also trying to recoup before the kids are due back at school.
 
Financial Counsellors are eager to warn people that if they hear from debt collectors asking for payments in respect of old debts or loans to be wary in acknowledging that they owe money. Always ask to see relevant paper work that substantiates a current debt. 
 
“In the past 12 months there has been a marked increase in collectors attempting to claim what is commonly referred to as ‘old debt’, or ‘statute barred debt’, where the debt agency may have legally run out of time to collect,” Ms Hough said.

“This is even more important when the alleged debt is being chased by an interstate or overseas debt collection company,” Ms Hough said.

“If you are contacted by a debt collection company regarding ‘old debt’, you should contact Legal Aid or your local Community Legal Centre and receive free independent legal advice as to whether the debt collector can legally ask you for the money,” she said.

With funding from state and federal governments, UnitingCare Community provides face-to-face financial counselling free of charge to individuals experiencing financial stress. UnitingCare Community also operates the Financial First Aid line 1800 007 007 for those who wish to discuss their financial options direct with a financial counsellor. The line is open from 9:00am – 6:00pm Monday-Friday.

Financial counsellors aim to increase a person’s financial literacy skills by assisting people to prepare a realistic budget and, where appropriate, advocate on their behalf with debt collectors, creditors and banks to ensure that the rights of the consumer are respected.