Each place that licenses collectors asks whether the applicant can be trusted with the work, and some ask whether there is money behind them. New South Wales refuses anyone disqualified or not fit and proper; Western Australia requires an applicant to be fit and proper, of good character and repute, and 21 or older, requires a fidelity bond or bank guarantee, and refers every application to the police; South Australia asks for net assets of at least $10,000 and a recent police certificate.
General informationAbout licence requirements as the regulators publish them, not advice about any application. Requirements, fees and forms are on the regulators’ own pages: NSW Fair Trading, the WA Government’s licence guide, SA.GOV.AU and Consumer Affairs Victoria.
Three states side by side
| Asked about | New South Wales | Western Australia | South Australia |
|---|---|---|---|
| Age | Under 18 is disqualified | 21 or older | Silent |
| Character | Fit and proper to hold a licence | Fit and proper, and of good character and repute | A conviction for a serious offence of dishonesty, or a summary one in the last ten years, may stop registration |
| Criminal history | Disqualified for a relevant offence in the last five years that drew imprisonment or a fine of $5,000 or more | The Commissioner of Police checks each applicant’s suitability | A National Police Certificate no more than 12 months old |
| Insolvency | An undischarged bankrupt, or a corporation under a winding-up order (with limited exceptions), is disqualified | Silent | No application while bankrupt, in receivership or under a suspended or disqualified licence, or within five years of directing a company wound up to benefit creditors |
| Money | Silent | A fidelity bond or bank guarantee: $6,000 for an individual, $10,000 for a company | At least $10,000 in net assets |
| References and experience | Silent | Three business references, one from outside the applicant’s workplace, showing two years of full-time relevant work in the past five | Recognised qualifications; a company needs a manager holding a relevant licence |
| Time to decide | Up to 28 business days | 4 to 6 weeks | Silent |
New South Wales also disqualifies anyone subject to an exclusion order, and anyone who is a controlled member of a declared organisation. A partnership cannot hold a NSW licence, though each partner who is fit and proper may apply as an individual or a corporation. In Western Australia the security must be lodged before a licence can be issued, and the Act asks for testimonials to the applicant’s character from at least three reputable people.
Victoria: permission instead of a licence
Victoria issues no licence, but it does keep some people out. An individual is prohibited from collecting debts if they are under 18, a represented person under the Guardianship and Administration Act 1986, or an insolvent under administration, or if certain things have happened in the last five years, such as a cancelled or suspended private security licence, or being found guilty or convicted of an offence involving fraud, dishonesty, drug trafficking or violence punishable by three months’ imprisonment or more. A corporation is prohibited if it is externally administered, has a prohibited director, or is managed or effectively controlled by a prohibited person, or if certain things have happened in the last five years, such as a finding of guilt for a prohibited debt collection practice.
A prohibited person or corporation must ask the Business Licensing Authority for permission to collect debts, to be a director of a collecting company, or to manage or control one. The Authority weighs industry standards and the protection of the public against the applicant’s own circumstances, and it may attach conditions, which the person must then keep to.
After approval in New South Wales
An individual or sole trader has 14 days from the approval notice to have a photo taken at a Service NSW Centre for the physical licence; the application can be refused otherwise.
Once the photo is taken and the licence approved, an interim letter allows commercial agent work until the photo licence arrives.
Any change of details goes to NSW Fair Trading within 14 days. So does notice, within 7 days, that someone employed or engaged for the work is a disqualified person.
A renewal notice is emailed about 60 days before the licence expires, and the licence can be renewed or restored for 1, 3 or 5 years.
South Australia’s duties run on a yearly cycle: each licensed agent pays an annual fee and lodges a return, and must tell Consumer and Business Services within 14 days of an offence or a legal restriction such as bankruptcy. In Western Australia a licence is suspended if the bond or bank guarantee ends or is cancelled, until a new one is lodged.
Other people’s money
A collector holds money that belongs to someone else, and the licensing states each set rules for it.
- NSW
Money from commercial agent work goes into an account with an authorised deposit-taking institution, opened and held by the agent for that purpose; records of its transactions are kept for at least 3 years. Money held more than 2 years unclaimed calls for reasonable efforts to find its owner.
- WA
Money in a debt collector’s trust account cannot be used to pay the collector’s own debts, and the collector’s creditors cannot have it seized through a court. The bond or bank guarantee protects clients if a collector mishandles money.
- SA
A collection agent pays money received from clients into a trust account.
- NT
Money an agent receives for someone is held only for that person, in a trust account with an authorised deposit-taking institution in the Territory, paid in within 2 working days.
- QLD
Stealing or misusing trust money is an offence that risks a fine and imprisonment.