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National Bulk Debt project writes-off debts for vulnerable clients
Date : 30 Jun 2011
Financial counsellors and legal centre lawyers are invited to be part of an innovative National Bulk Debt project that negotiates debt waivers on behalf of groups of disadvantaged and vulnerable clients.
The project builds on West Heidelberg Community Legal Service’s success in 2010 in conducting the first 'bulk debt negotiation' project on behalf of 425 clients, which resulted in $3.75 million in unsustainable debts written off by major creditors.
The National Bulk Debt website allows financial counsellors, legal aid and legal centre lawyers to register and submit eligible clients' details to permit negotiations to waiver a debt with a creditor on their behalf. Details must be lodged on the website between 30 June 2011 until 30 July 2011.
The project is currently focussed on major debt collection agencies and utility providers including Credit Corp, Baycorp, ACMS, Telstra, AGL, GE. These creditors were identified after consultation with financial counsellors about which debts their clients present with most often. Additional collections aimed at more debt collectors, finance providers and other creditors will be added later in the year.
The current phase of the project is a collaboration between Victoria Legal Aid, Legal Aid NSW and West Heidelberg Community Legal Service.
Rob Daly, Social Inclusion Manager at Victoria Legal Aid said that ‘through this project we aim to achieve not only write-offs of unsustainable debts for the clients referred, but also long-lasting changes in market behaviour and in regulators' approaches to long-term financial hardship.
‘We expect the project will lead to more innovative processes for advocacy on behalf of the most disadvantaged and vulnerable in our communities.’
The rationale for the Bulk Debt Project lies within section 60 of the Social Security (Administration) Act 1999 which provides that Centrelink income is protected and cannot be garnished to pay debts to creditors (other than the Commonwealth).
Not a financial counsellor or lawyer
Individuals must be the client of a financial counsellor, legal aid or legal centre lawyer in order to be referred to this project.
If you think you may be an eligible client, speak to your financial counsellor. If you need help finding a counsellor, see Financial Counselling Australia's website.
More information
For more information see National Bulk Debt – About this project or contact Social Inclusion Manager Rob Daly or Rose Sesto on (03) 9269 0416 (ext. 416 in Melbourne).