Are you an owner of a business that provides utilities to clients and are having trouble with utility business debt collection?
If so, you may be having some troubles with the legal and regulatory side of things, which is a serious aspect and can lead to a lot of stress.
Debt collection is a difficult task that can involve a lot of legal elements.
People’s money, livelihoods, and personal information are on the line when you are collecting debts, especially in the utility field, so you cannot use whatever methods are necessary.
After all, people need utilities to practically survive! It is important for both your business and your clients that you can collect your debts effectively and legally, however, so how can you do just that?
In this article our debt collection team will discuss some of the challenges regarding the legal and regulatory side of debt collection in your utility business and how you can navigate them.
Utility Business Debt Collection
There are a number of different utilities companies . businesses, and therefore a number of different Utility Business Debt Collection required. Some of these include:
- Cable and satellite utilities are companies provide cable and satellite television services to homes and businesses.
- Electric utilities companies generate, transmit and distribute electricity to homes and businesses.
- Gas utilities companies distribute natural gas through pipelines to homes and businesses for heating and cooking.
- Sewage utilities are companies that treat and dispose of wastewater and sewage.
- Telecommunications & Telephone utilities are companies that provide phone, internet, and television services to homes and businesses.
- Waste management utilities are companies that collect, transport, and dispose of waste and recyclables.
- Water utilities companies treat and distribute potable water for consumption and other uses such as cleaning, irrigation and industrial processes.
Australian Consumer Law
The first legal and regulatory challenge that you will be required to deal with when navigating utility business debt collection as a utility business is Australian Consumer Law (ACL).
The ACL is a federal piece of legislation that established the guidelines for what someone is allowed and not allowed to do when collecting a debt.
Regardless of the industry, the rules set out by the ACL will apply.
You are legally required to abide by this act or risk your debtor taking legal action against you for violating their rights.
So, how can I go about dealing with this?
The only real way that you can manage following these laws within your business is by learning them!
You can also hire a debt collector to recover your debts so that you don’t have to worry too much about the legal risks.
Utility Business Debt Collection Regulations
Another legal and regulatory challenge that you will be required to deal with when navigating utility business debt collection as a utility business is the regulations of the state on debt collection.
What these laws are will depend on the state! In all States of Australia, you are strictly not allowed to be threatening, coercive, or physical with debtors.
There are many other laws for Australia, but these are the more dire rules.
Utility Business Debt Collection Utility-Specific Regulations
Another legal and regulatory challenge that you should be aware of when navigating utility business debt collection is the regulations specific to the utility industry.
Utilities, such as gas and water, can be considered to be a vital element in someone’s life and home.
Utilities allow people to shower, cook, drink water, eat, and many other things that people don’t even think about in their daily lives.
This means that utility businesses are different from banks or retail businesses in their products and the rules they have to follow.
Make sure that you are aware of utility-specific regulations, such as metering and billing, so that you keep your business in the clear legally.
Client-Protective Guidelines for Utilities Debts
Another legal and regulatory challenge that you will be required to deal with when navigating utility business debt collection as a utility business is the client-protective guidelines.
When you are dealing with a debt, you are dealing with someone’s confidential information and their money, two things that are very important to be kept safe and private.
For this reason, there are protections in place for clients that prevent creditors from acting poorly.
For example, you must not reveal information about a debt to anyone outside of your business that is not your client.
You should educate yourself on client protection so that you protect your business legally and keep your clients happy and protected.
Utility Business Debt Collection - Dispute Resolution
Another legal and regulatory challenge that you should be aware of when navigating utility business debt collection is the possibility of dispute resolution.
Sometimes clients don’t pay their debts. This is annoying, to say the least, and your first instinct may be to just sue.
Unfortunately, this is not the easiest nor the best option for you or your client. Instead, you may be involved in a process of dispute resolution.
One method of dispute resolution that you may wish to use is ADR or alternative dispute resolution.
This term refers to the several ways that a dispute can be solved outside of court and can save you a lot of time and money.
It will have legal parameters and may involve lawyers, so it is wise to prepare adequately for such an event.
Utility Business Debt Collection - Bankruptcy
Another legal and regulatory challenge that you will be required to deal with when navigating utility business debt collection as a utility business is the possibility of a client declaring bankruptcy.
A client declaring bankruptcy may be a nightmare of yours as a creditor.
After all, you may have heard that your chances of getting paid in full slim quite significantly when such occurs.
When a client declares bankruptcy, there are certain procedures that you must follow.
If you do not follow such procedures you may face legal trouble, so make sure that you are aware and maybe even seek legal advice in such a circumstance.
Utility Business Debt Collection Legal Action
Another legal and regulatory challenge that you should be aware of when navigating utility-related utility business debt collection is the potential legal action you may have to manage.
Legal action is obviously quite high stakes and can involve some issues.
It should also be a last resort for you as a business owner, as it is very expensive, time-consuming, and may tarnish your reputation as a business if anything goes wrong.
It is wise to pursue other routes before resorting to a court matter, but it may be necessary, so it is good to know about it!
Hire an Australian Debt Collector
Are you looking for a way to avoid personally managing all of the legal risks involved with debt collection in your business?
If so, a utility business debt collector may be the help that you need!
Debt collectors are professionals and will, therefore, have quite a complex understanding of the laws and regulations of utility business debt collection.
This way, they will be less likely to violate a law in the process of collection and will probably do so with more success, which is an extra bonus!
You should be aware that violations of debt collection laws by debt collectors are the responsibility of the creditor, so be careful with who you hire!
Contact us today or submit your debt online.
Advance debt collection is an Australia-wide commercial debt collection agency and credit and accounts receivable management. We can recovery your debts, conduct skip tracing, and manage your accounts receivable. We collect your debts for commission only. This means no collection, no commission. We are professional debt collectors with combined 20 years of experience to help you collect your debts. We are partnered with expert litigation lawyers with years of experience in debt recovery, enforcement, and insolvency. Under the Agents Financial Administration Act 2014 Advance Debt Collection Pty Ltd hold authority number 4583821 to act as a debt collector. ADC Advance Debt Collection® is a registered trademark.
