Negotiation of debt repayments with customers 107-05010100

To prepare for the call:

• gather details about the debt
• gather the customer's financial details
• determine the minimum acceptable payment amount

To action the debt:

• Debt Staff, use the Debt recovery script
• Non-Debt Staff, use the Debt Repayment Guided Procedure

Contact the customer by phone:

• tell the customer that the debts should be paid in full by the due date
• ask questions to clarify issues about the customer's financial situation and their desired outcome

If the customer is entitled to any of the following, the funds can be used to repay a debt:

• FTB top-up
• FTB lump sum payment, or
• FTB instalment arrears

This can occur even if the customer has entered into a repayment arrangement. Any residual amount is paid to the customer.

For more information, see Debt offsetting during family assistance reconciliation and lump sum claim processing.

Negotiate a repayment amount:

• Procedures for arranging withholdings to recover debts
• Arranging cash repayments to recover debts

Gain an understanding of the customer’s financial circumstances, explore viable repayment options and develop alternatives with the customer as part of the negotiation. For example, extra time, instalment arrangement.

Inform the customer of the consequences of not entering or maintaining their payment arrangement and document. This includes informing the customer of the following action that may occur under the cost effectiveness guidelines:

• Deductions (withholdings) from the debtors social security payment
• Garnishees
• Departure Prohibition Order (DPO)
• Interest Charge (IC)

Inform non-current customers:

• an Interest Charge (IC) will be applied from the debt due date
• the charge will continue until they make a payment under an acceptable payment arrangement
• this happens even if the arrangement is in place before the due date but the payment is not made until after the due date

Record all discussions, including warnings given on a DOC.

Make a decision as a result of the negotiation wherever possible:

• where there is an agreement, repeat the exact details of the arrangement to the customer. Ask them to commit to it.
• explain possible consequences if the arrangement is broken
• record all details of negotiation in a DOC
• confirm the arrangement by mail