© Whitireia Community Law Centre 2006
Third Floor Pember House, 16 Hagley Street, Porirua
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DEALING WITH DEBT COLLECTION
AGENCIES AND CREDIT REPORTERS
SUCH AS BAYCORP?
When a debt collection agency such as Baycorp sends you a notice saying you have a debt
you owe someone else money, there are things you can do.
If you believe that you do not owe the money, you can dispute the debt.
If you don’t dispute the debt you still have options.
What should I do if I dispute the debt?
If you dispute part of all of the debt you should consider the following:-
! Don’t ignore the notice
Ignoring the notice will not make it go away.
! Advise the agency that the debt is in dispute
Write a letter to the agency stating that the debt is in dispute and explaining why. Advising them that there is a real and
unresolved dispute over the debt should mean that they will stop any action to collect the debt until the matter is
! Ask the agency to refer the matter back to the creditor
Ask them to refer the matter back to the person they allege you owe money to (the creditor). Also ask them for any
detail they hold relating to the alleged debt. If possible, fax or email these requests directly to the agency keeping a
record of the time and date you sent the fax. Always make sure you put the agency’s reference number or your client
number on any correspondence.
! Ask for your credit record to be amended
When you contact the agency, you should also state that you require them to remove the credit record relating to the
alleged debt until the dispute is resolved (pursuant to Privacy Principle 7).
! Make a claim in the Disputes Tribunal
If a dispute cannot be resolved, you can take a claim to the Disputes Tribunal to seek an order that you are not liable to
pay the alleged debt. The Disputes Tribunal will only consider claims of up to $7500 (or $12,000 if both parties agree).
If the debt is more than th