Related information and links
What to know if you’re approached by a commercial agent to collect a debt, repossess goods or serve legal documents.
On this page
Key information
This information is for consumers. Please see our Commercial agents page for information about licensing and professional obligations.
If you have been approached or contacted by a commercial agent to collect a debt, repossess goods, or serve you with legal documents, you have certain protections under Australian law.
- A commercial agent who contacts you in person (or face-to-face) must hold a current licence and show you that licence on request.
- A commercial agent must not use physical force, mislead, harass, coerce or act unconscionably towards you. Commercial agents are also required to protect your personal information.
- A commercial agent should only contact you in person if they need to. This includes:
- investigating reasons for non-payment of a debt, requesting payment or arranging a payment plan
- inspecting or repossessing mortgaged goods (if they have a right to do so)
- serving legal documents, such as a writ or summons.
See the commercial agent rules below to find out more.
What commercial agents do
Commercial agents act on behalf of a client to collect debts, repossess goods and serve legal documents (known as ‘process serving’) to others.
By law, commercial agents who have face-to-face contact with customers (field agents) and employers of field agents must hold a current licence.
Face-to-face activities include approaching a person and/or visiting the place they live or work to collect debts, repossess goods or serve legal documents.
Learn more about each below:
Debt collection
Debt collection involves finding an individual and requesting, demanding or collecting money from them to ensure they pay a debt owed to another person or company.
For example, a bank may engage a commercial agent to retrieve an outstanding payment from one of its customers.
Repossession of goods
Repossession of goods involves finding, demanding or seizing goods held by an individual, on behalf of another person or company.
For example, if a person has failed to make payments on a car they financed and the car is used as security for the loan, a commercial agent may be engaged to seize the car to recover the debt.
Process serving
Process serving means serving legal process to a person on behalf of a client. This relates to legal proceedings involving both the client and the other person.
For example, a commercial agent may serve a court summons to an individual on behalf of a client.
Commercial agent rules
All commercial agents must adhere to the following rules.
Commercial agents must:
- have appropriate knowledge and understanding of the Act and other relevant laws
- act in accordance with client instructions
- not act for any person where to do so would result in a conflict between the commercial agent’s and client’s interests
- take reasonable steps to ensure employees comply with any orders issued by the NSW Fair Trading Commissioner
- not use, or threaten to use, physical force or violence
- not enter a private dwelling without consent
- not use coercive, intimidating or unconscionable conduct
- not carry out debt collection where the debt cannot be the subject of demand
- provide evidence of the debt when requested by the person liable for the debt
- not contact a person outside of reasonable hours or by a method that the person has requested the commercial agent not use when carrying out debt collection
- not misinform, mislead or deceive a person while carrying out commercial agent activity
- not demand or collect payment for the cost of the commercial agent activity from a person who is the subject of that activity
- not disclose to a third party that the consumer is subject to commercial agent activity, unless with the consent of the person who is subject to the debt or as reasonably necessary to carrying out commercial agent activity, or with another lawful excuse
- comply with trust accounting obligations
- keep trust account records in accordance with the rules
- comply with obligations surrounding unclaimed trust money
- not employ or engage disqualified persons
- notify the NSW Fair Trading Commissioner within 7 days of becoming aware that a person employed or engaged to carry out commercial activity is a disqualified person
- take all reasonable steps to resolve a complaint.
Changes to the regulation of commercial agents in NSW
In NSW, new requirements for commercial agents began on 1 July 2022.
The Fair Trading Act 1987 (the Act) was amended to establish safeguards and protections for consumers by requiring that commercial agents do not engage in behaviour that is harmful or inappropriate.
If you are contacted by a commercial agent for a legitimate reason, you should be respectful but can also expect to be treated in a professional manner.
If a commercial agent breaches the commercial agent rules, they are guilty of an offence and may be penalised or issued with a restriction or exclusion order.
Making a complaint
From 1 July 2022, anyone can make a complaint about a commercial agent or their employer through the NSW Fair Trading website.
Fair Trading will assess all reports of non-compliance regarding commercial agents confidentially. You can make a complaint anonymously.
If your report relates to a criminal matter outside of the legislation, or if you have any concerns regarding your safety or well-being, you should report the matter immediately to your local police station.
Contact us
If you need help or have a question, please call 13 32 20.
Can’t find what you’re looking for? Send a general enquiry.