Debt Collection Compliance Checklist

Before you start

Debt collection conduct is shaped by consumer-protection law and regulator guidance on what is reasonable contact. Before reviewing your process, understand that harassment, misleading statements and undue pressure can expose you to complaints and penalties. Review how, when and how often your team contacts debtors today.

• Map your current contact methods, timing and frequency.
• Review the wording of your reminders and demands for accuracy.
• Check how your team responds to disputes and hardship claims.
• Confirm you keep a record of each contact.

This is general information only and not legal advice. Collection conduct rules are detailed and depend on the debtor and the debt — get professional advice to confirm what applies to you.

Communicate fairly

1. Contact debtors at reasonable times and avoid excessive frequency.
2. Be accurate — do not overstate consequences or imply steps you will not take.
3. Avoid threats, coercion, public embarrassment or contacting unrelated third parties.
4. Identify yourself and the debt clearly so the debtor knows who is contacting them.
5. Give the debtor a genuine opportunity to respond, dispute or arrange payment.

Firm and fair are not opposites. You can be persistent and clear about consequences while staying well within reasonable conduct, and that balance is exactly what keeps your process effective and complaint-free.

Handle disputes, hardship and records

1. Pause aggressive chasing while a genuine dispute is investigated.
2. Treat hardship disclosures seriously and consider reasonable arrangements.
3. Do not misrepresent the legal status of the debt or your next steps.
4. Record the date, method and substance of every contact.
5. Keep copies of all written communications and any agreements reached.

Good records protect you twice over: they support the debt if it escalates, and they show your conduct was reasonable if the debtor complains. Build the habit of documenting every interaction.

Common mistakes

• Contacting a debtor too often or at unreasonable times.
• Overstating consequences or threatening action you will not take.
• Continuing to press hard while a genuine dispute is unresolved.
• Ignoring hardship and refusing any reasonable arrangement.
• Failing to keep a record of contacts and agreements.

If chasing is taking too long or risks crossing a line, handing it to specialists keeps it compliant. A free debt appraisal lets a professional take over the conduct as well as the chase.