Clients often have limited information or paperwork regarding debts. There is no simple way to find out if your client has unpaid debts or owes money. If your client believes they owe money but is unsure of the details, they can:
If your client knows which company they owe money to but is unsure of the details, they can contact the company to request information about the account.
If your client tries to use a company but has an unpaid account, the company may refuse to provide a service unless the previous account is paid or your client comes to another arrangement.
Before contacting companies about unpaid debts, your client should consider:
When contacting companies to ask if they say your client owes them money, you should not admit that your client owes a debt as this may restart or extend the time the company has to pursue the debt. You can refer to any money owed as the ‘alleged debt’ or ‘the amounts you say are owed’.
Some companies will contact your client to request a small, one-off payment (sometimes as low as $10). They may say that they will pause enforcement action if one payment is made. Making a payment will extend the time the company has to pursue a debt. Given this, your client should see a financial counsellor or a community lawyer before making a payment on any old accounts.
In some instances, if a debt is old and the company is not actively pursuing your client, the best option may be to do nothing. A financial counsellor or community lawyer can give more detailed advice about this option.
Most larger companies will have a hardship department trained to assist people struggling to pay their bills. This is usually a good initial contact point. Many companies now also have a dedicated team to work with financial counsellors and other frontline workers that are staffed by specially trained people, many that have come from the community sector. These teams are often able to assist community workers even if you are not a financial counsellor.
It can be difficult to get the contact details of the hardship team or details of the team that assists financial counsellors or frontline workers. If this information is not available online, you can call the general line and ask for the relevant details.
To whom is may concern
My name is [insert name] and I am a [social worker/tenancy support worker/case worker/etc] at [insert organisations]. I’m assisting [client name] (DOB: xx/xx/xx) and have attached my client authority.
[Client name] believes that they may have previously held an account with your company. They have asked me to contract you to request information about any previous accounts in their name.
To allow me to assist [client name], can you please confirm if there are any open accounts or if your company believes my client owes it money.
For any accounts, can you please provide a current statement and a copy of any agreements my client may have entered?
Thank you for your help with this matter. If you would like to discuss this further, please contact me on [insert number], rather than contacting my client.
Kind regards
Some companies will ask for more information about your client, such as their current address or a driver license number. You only need to give enough information to identify your client and show that you have authority to contact the company on their behalf.
Credit reports are created and held by private companies. The law restricts how these companies use the information they hold.
A credit report will usually have information about your client’s credit history, including if they have applied for credit, if a company has given them credit, or if they have not paid certain bills or some types of accounts.
Your client is entitled to a free copy of their credit report at least every three months. There are three companies that keep credit reports in Australia. Unfortunately, each company could hold different information, so it’s usually best to request a copy from all three. The three companies are:
Each company has a slightly different process for requesting a credit history. Your client will likely need to provide evidence of their identity and some current contact details. If you request a report for a client, you will need to provide a letter of authority.
What information is on a credit report?
If your client doesn’t agree with the information on their credit history, they should talk with a financial counsellor or community lawyer. Unfortunately, a default will only be removed in very narrow circumstances. A community lawyer or financial counsellor may be able to give your client advice about this option, if they think there is an incorrect default. Your client should be weary of credit repair companies that charge fees. In most instances, your client can get the same help for free.
Homeless Law may be able to assist your client have a debt waived based on their hardship.
The content on the Workers’ Resource Hub is legal information for general guidance and not legal advice. The content on this webpage was last updated in August 2023. See full disclaimer and copyright notice.
If anything on this page is missing, incorrect, or confusing; or you have any other feedback, please use this form.
Justice Connect Homeless Law can provide free legal help. Refer a client by applying online or call our intake line.