They make the calls you don't want to get and are the people you don't want to see at your doorstep and it turns out that debt collectors are also the people some Magistrates don't' want in their courtrooms. That's right, debt collectors have been given the boot from the Magistrate's court.

7NEWS has been reliably informed that the collectors for these agencies, the foremost being JL's Quick Loans, have been told they have no legal standing in court. Why? Well these debt collectors are hired by BTL and the Housing Department and other agencies to collect money owed by their delinquent customers. The court now says JL's has no legal right to collect on their clients' behalf because while these customers do owe money, it is not to JLs and so in effect JLs and other collecting agencies can't take them to court. Some legal observers point out that the court is being used by these collecting agencies as a bargaining chip because after filing a civil action for the amount owed, they convince the customer, who is under legal duress, to signup for a easy payment plan.

The way around this for companies and the collection agency is to reword contracts in which allowance is made for debt collectors.

Tags BTL Housing Department