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Prepaid Pads of Debt Collection Letters

Wednesday, October 28, 2015 - Posted by Philip Harvey

Following NAB's response to ASIC about possible misleading, deceptive or unconscionable in its debt collection practices, we are sometimes asked about selling "pads" of debt collection letters.

By way of background, it was not uncommon historically (many, many years ago) for debt collection agencies to sell pads of demand letters to clients. The basic mechanics of these demands were;

  • A package of prepaid demands on the debt collection agencies letter head would be provided to a client.
  • The debt amount, reference numbers, debtors details would all be blank.
  • When required, the client would "fill in the blanks".
  • The client would then post the letter to the debtor, and supply a carbon copy to the debt collection agency.

We do not supply these prepaid demands and never have as we believe the conduct to be misleading, deceptive and possibly unconscionable for similar reasons to ASIC's concerns linked above.

Any reasonable consumer would believe that the letter was issued from the debt collection agency when in fact it has not been. This also implies that the debt has been outsourced to collection from the client to the debt collection agency when it has not.


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