It is unlawful to use physical force, coerce or unduly harass someone about the supply of, or payment for, goods or services.

Undue harassment means unnecessary or excessive contact or communication with a person, to the point where that person feels intimidated, tired or demoralised.

Coercion involves force (actual or threatened) that restricts another person's choice or freedom to act.

Unlike harassment, there is no requirement for behaviour to be repetitive in order to amount to coercion.

Financial institutions are entitled to attempt to collect debts but their conduct may be undue harassment or coercion when it involves frequent unqelcome approaches and requests or threats for payment.  Laws relating to privacy, harassment and misleading or deceptive conduct aplly to all businesses, including debt collection agencies.

For example - A consumer was in arrears on their credit card when they lost their job and had to care for an ill family member.  The bank sold the debt to a debt collection company.  The company told the consumer that, if they left the country, they would not be able to return while the debt waas unpaid.

The company also obtained details and other information about the consumer's family.  The company did this by contacting a friend of the consumer, and pretended the consumer had applied for a home loan and sought information to verify the home loan application.

The company used this information to embarrass the consumer and continued to call them, despite their request that they contact them through their financial counsellor.  In this instance the company's actions would be considered harassment.

The maximum civil and criminal penalties for harassment and coercion are $1.1 million for a body corporate and $220,000 for and individual.