Debt collectors must be licensed in Western Australia under the Debt Collectors Licensing Act 1964 .
Who needs a licence?
You need a debt collectors licence if you:
- work as or say you are a debt collector
- do any debt collecting tasks
- run a debt collector business.
Working as a debt collector without a licence is against the Act and may incur a fine of up to $50 000.
Licence exemptions
Some people and organisations may not need a licence, including:
- legal practitioners
- public accountants
- court sheriffs and bailiffs
- liquidators
- banks or friendly societies
- trustees
The full list of exemptions is covered in Section 4 of the Act.
Conducting business as a debt collector without the appropriate licence is an offence. Anyone operating without a licence is not entitled to be paid for their services. If you are unsure if you need a licence please contact the licensing team on 1300 30 40 64.
Applying for a licence
To obtain a licence, you must be:
- a 'fit and proper person' to hold a licence;
- a person of good character and repute; and
- 21 years of age or more.
Applications are referred to the Commissioner for Police to check if you are a suitable person to hold a licence.
Debt collector's licence forms
On WA.gov.au's Debt collectors section, you can:
- apply for a new licence
- renew a licence
- transfer a licence
- change contact details
- replace a lost licence / request a duplicate
Other forms you may need:
Bank and bonds
A security (bank guarantee) or a fidelity bond protects clients if a debt collector mishandles money. A person who suffers a loss because of a debt collector's actions can make a claim against these.
You must have either a bank guarantee or a fidelity bond to apply for a debt collectors’ licence. They must be lodged using the correct forms. Information about bonds and bank guarantees including amounts and forms is available from Debt collector's licence pages.
You can release money you have used as security if you:
- no longer work as a debt collector and
- have not received any money into trust
To release your money, you will need to use the Application for discharge of surety and statutory declaration of no receipt of trust funds - Debt collectors.
Cancelled bonds
A licence will be considered suspended if a bond is terminated during the licence period. A replacement bond will need to be lodged with the Consumer Protection.
Mutual recognition
Mutual recognition page on WA.gov.au has more information for registered or licensed debt collectors (individuals) from elsewhere in Australia or New Zealand.