Got a debt letter — is it real? How to tell.
Scam debt letters are common in Australia. Here's how to verify whether a debt is genuine, before you pay anything.
Got a debt letter — is it real? How to tell.
Fake debt letters are a common scam in Australia. Before you pay anything, verify the letter is real. Here's how.
Red flags
- Pressure tactics — "pay within 24 hours or face arrest". No legitimate Australian debt collector can have you arrested for unpaid civil debt.
- Unfamiliar creditor — you don't recognise the original business.
- Vague amount — exact dollar figure missing or oddly specific (like $1,247.83 with no breakdown).
- Demand for unusual payment methods — gift cards, cryptocurrency, wire transfer to overseas accounts.
- No ABN/ACN on the letter or website.
- No mention of dispute rights or hardship — legitimate Australian collectors must mention these.
Verification steps
- Search the collector's name + "ABN" or "ASIC" — every legitimate Australian collector is registered.
- Check ASIC's professional register — credit-licensed collectors are listed.
- Phone the original creditor directly (using a number from THEIR website, not the letter) — confirm whether the debt was sold or assigned.
- Look up the collector at AFCA — legitimate financial-services collectors are members.
- Search for complaints — scam collectors leave a pattern.
What to do if it's a scam
- Don't pay anything.
- Don't share bank details or personal info.
- Report to ScamWatch (scamwatch.gov.au).
- Report to ACMA if it came via SMS or call.
- Report to your bank if you've already paid — fraudulent transactions can sometimes be recovered.
What to do if it's real
- Verify the amount and basis.
- Use the legitimate dispute pathway if you don't agree.
- Apply for hardship if you genuinely can't pay.
- Settle through the official portal — never via phone with card details.