Garnishees 107-05050000

Debt Recovery script

Before considering garnishee action, staff need to:

• complete outbound debt recovery process
• make a reasonable effort to contact the customer

Has a reasonable effort been made to contact the customer?

• Yes, go to Step 2
• No, complete all required contact attempts. See Outbound customer contact and gathering information when recovering debts

Check there is information on file to support garnishee action.

Debt Staff need to take into account:

• the debts are due and payable
• there must be supporting employment or bank account details (with balances over $5,000)
• if reasonable effort has been made to contact the customer
• all timeframes for the customer to respond to letters and if messages have expired
• the financial circumstances assessment completed within the last 3 months must have an excess income of $15 per fortnight or more
• if garnishee action will cause financial hardship
• if the customer has failed to enter into a reasonable arrangement to repay the debt, or
• having entered into such an arrangement, has failed to make a particular payment in accordance with the arrangement

It is not cost effective to garnishee continuing income, such as wages or weekly compensation amounts when a debt balance is less than $200.

Is there enough information on file to support garnishee action?

• Yes, go to Step 3
• No, go to Step 10

The customer must receive garnishee warnings in the 90 days prior to implementing the garnishee. Warnings can be verbal or in writing. See the Resources page for more information, including letters that contain warnings.

Was the customer warned of garnishee action within the last 90 days?

• Yes, go to Step 4
• No, issue a written warning to the customer using a Q190 or Q289. Resubmit any activity and/or Fast Note for 14 days

Garnishees cannot take place on PGPA debts see Recovery of PGPA overpayments .

The Litigation Team can pursue PGPA debts over $10,000 under Common Law.

After removing the PGPA debt/s from the intended notice amount, is it still cost effective to pursue garnishee action?

• Yes, go to Step 5
• No, go to Step 10

Check the Arrangements field on the Debt List (OPDL) screen.

Does the customer have a current repayment arrangement or write-off?

• Yes, go to Step 6
• No, go to Step 7

Has the customer failed to disclose details their true capacity to repay their debt?

• Yes, go to Step 9
• No, go to Step 10

Check if voluntary recovery of the debt has been sought by withholdings, third party withholdings or cash instalments.

This may include:

• attempts to contact the customer
• issue of a reminder or Interest Charge notice
• discussions about a repayment arrangement

Has voluntary recovery of the debt been sought by withholdings, third party withholdings or cash instalments?

• Yes, go to Step 8
• No, go to Step 10

Establish if the customer:

• has failed to enter into a reasonable arrangement, or
• had an arrangement they did not keep, or
• failed to disclose details or evidence about their true capacity to repay and refused to revise an existing arrangement

Note: a decision that an existing repayment is not reasonable, must be made and documented by APS 5/6 Debt Staff before garnishee action can start. Garnishee can only be implemented for customers with an existing repayment arrangement if they refuse to revise the arrangement to align with their true capacity to repay

Has the customer failed to enter or keep an arrangement or disclose details about their true capacity to repay?

• Yes, go to Step 9
• No, go to Step 10

Discuss any identified vulnerabilities with an APS 5 Operational Leader to find out the right action to take. Make additional attempts to contact the customer. If unsure about starting involuntary recovery action, refer the case to the relevant Level 2 Debt Helpdesk for help. An APS 5 Operational Leader must document the outcome.

Is there any details on the customer's record that identifies a customer vulnerability, or indicates a garnishee should not be issued?

• Yes, go to Step 10
• No, go to Step 11

Consider other recovery actions according to the details on the record.

If recovery options have been exhausted:

• use Fast Note - select Auto Text, use Debt Recovery > Unsuccessful Engagement > Recovery Options Exhausted
• DOC the decision and include the exhausted recovery options
• link the NOARR activity to the Fast Note, in the Document Completion field, select 'Link to existing activity'

Unassign the work item, use the reason 'Service Support Referral'.

Procedure ends here.

For the right option, see:

• Garnishee of continuing income to recover debts
• Financial Institution (FI) garnishees to recover debts
• Garnishee of compensation payments to recover debts
• Tax garnishees to recover debts
• Other types of garnishees to recover debts

Staff members should contact the customer if they identify new information about the customer's capacity to repay a debt. This gives the customer an opportunity to finalise their debt rather than garnishee.