When The Price Is Consumer Rights
The Age
Saturday April 17, 1999
When Dean's bank took him to court after he missed payments on a personal loan, he thought the man in the suit who told him he was arranging a repayment deal must be the magistrate. Only later did he learn it was the bank's lawyer.
Such confusion is common among consumer debtors, who are often too ashamed to assert their rights or complain if their rights are not protected.
Many more do not know what their rights are - or, like Dean - even who the magistrate is.
Sometimes they face aggressive creditors willing to exploit that shame or ignorance.
But a pilot project in the Melbourne Magistrates Court is trying to achieve a more even power balance between debtors and creditors.
Since August last year, a project worker trained in legal affairs has been stationed in the court part-time, offering free advice to people with debt problems.
The project worker, Mr James Wilson, does not represent anyone in court, but briefs people on their rights.
Magistrates are aware of the program and suggest to people during hearings that they should speak to Mr Wilson before proceeding further.
Operated by the Credit Helpline and financed by the Consumer Credit Fund, the project developed after the Consumer Credit Legal Service, while defending a client, found that a representative of a mercantile agent had set himself up in a room at the court complex.
Any debtors of the agent with a court appearance that day were being directed to the room, where the representative had arranged a repayment deal or contract that the debtor was then instructed to sign. Most of the debtors thought they were dealing with a court-appointed officer.
It is a scenario familiar to Mr Wilson, who says many creditors' lawyers resent his presence. A quick chat with a debtor before a hearing may reveal debt collection practices that test the legal and ethical boundaries.
© 1999 The Age
Share This