Statements & Payments to Your Creditors

Every three months we will send you a statement of your Debt Agreement that shows all payments made for the previous quarter and the current balance of your agreement. Every quarter we will take the money you have paid and distribute that between your creditors, government realisation charge and administration fees.  Please keep us up to date with any change of address or contact details.

Contact from a Creditor

Please let us know if you are contacted by one of your unsecured creditors. We will contact them and arrange for the collection activity to cease.

Secured Debts

If you have a secured debt, please continue to pay this debt as usual. However, if at any stage you are not able to make these repayments perhaps resulting in the security being repossessed, or make the decision to sell the security, please contact us and we will assist you with this process.

Joint Debts

If you have an unsecured joint debt in the Debt Agreement and the co-borrower or guarantor is not covered under a Debt Agreement, Personal Insolvency Agreement or Bankruptcy, they must continue to make payments towards this debt. While your Debt Agreement will include payments to this debt, the creditor can still pursue the co-borrower or guarantor for the full amount of the debt and continue to charge interest and fees. If payments are not maintained by the co-borrower or guarantor, the creditor may opt to take legal action against this person to recover the debt. Please contact us if you believe a joint debt has been paid in full by the co-borrower or guarantor.

If the co-borrower or guarantor is covered under a Debt Agreement, Personal Insolvency Agreement or Bankruptcy, neither of you should make payments outside of your agreements. We will monitor any payments made by DCS Group to ensure the debt is not overpaid. Please note, your Debt Agreement payments will not change if the joint debt is paid in full.

Paying one of your Creditors directly

Whilst it is important to maintain payments to your secured creditors and other debts not covered by the Debt Agreement (eg. child support), please DO NOT make payments directly to any debts payable under your agreement. The amount you would be required to pay on your Debt Agreement would not reduce if you pay a debt directly. You will still be required to pay the full amount of your Debt Agreement. The other debts will receive a higher rate of return.

Obtaining Finance Whilst Your Debt Agreement is Noted on Your Credit File

There are no restrictions to applying for credit whilst in a Debt Agreement or after the Debt Agreement is completed. However, there are some things to consider:

• You must disclose the agreement when applying for credit over a prescribed amount.

• Whilst the Debt Agreement is on your credit file, you may find it difficult to locate a creditor who will approve the application. We suggest you approach a broker who is familiar with your circumstances or shop around before applying for credit to find a lender who can assist.

• Any debt you incur after the Debt Agreement is lodged is not covered by the agreement and you are solely responsible for the repayments.

• You should consider if the cost of the repayments and any ongoing maintenance associated with the purchase may affect your ability to pay your Debt Agreement?

Please note that the final decision is dependent on the lenders policy.

When we Receive your Final Payment we will:

• Congratulate you on becoming debt free!

• We will cancel your direct debit authority at the Bank.

• Pay final payments to your creditors and advise them you have completed your Debt Agreement.

• Advise Australian Financial Security Authority who will also confirm completion in writing to you.

• Advise you in writing. We provide you with a complete statement of your Debt Agreement.  We let you know when your credit file will be clear and how to request a free copy to verify.