Baycorp and Debt Collection

Yes, but only if your debt is secured. Usually, however, they only use this approach as a last resort before legal action if they’re unable to speak to you via phone or other methods (they don’t usually want to leave the secrecy they can keep from behind their desk). What debt collectors can’t do is use force to enter your house or garage, take advantage of vulnerability or disability, or use physical force or pressure to gain control, harass, or threaten you into paying.

Defaulting on a secured debt is a little different
If you have a secured debt (i.e. a car, television, etc.), the items pledged as security can be repossessed by the debtor in order to sell to pay off any balance owing. They cannot, however, enter your home without a repossession warning notice and have a reasonable belief that the secured item is within your home. You can read more about repossession here.

Generally, repossession agents are very careful to ensure they are entering a property occupied by the debtor, and repossess specifically only the items listed in the agreement. Anything taken beyond what's on the list is theft.

Sometimes you can ignore debt collectors and, in some cases, they may eventually stop contacting you. If the debt is small, owing to a business outside of the country, and/or not worth taking legal action, then there’s nothing much more the debt collector can do.

The debt will, however, more often than not be reported to the credit bureau where it will remain on your report as an unpaid/derogatory debt. It says on your credit report for at least three tears. Once it falls off your credit report, the debt is still owed but will be written off by the company. But companies don't forget you owed them money. You're therefore unlikely to be able to enter into credit contracts with them in the future. ​

Yes - but in most cases, this is relatively rare. The costs for a company or debt collection agency are likely to be too high. For this reason, the limit of their powers is regular chasing for payment.

If a business you owe money chases you through the courts, the Department of Justice outlines the process. If you lose the case, a court order will be made to pay the amount determined by the judge.

No - debts are a civil matter, not criminal, so you can't be arrested or go to jail for not repaying a debt. If the debt is court-ordered and you fail to repay, your property can be seized and/or you can be sentenced to community work for not following a court order. The Department of Justice  website has more details.

Yes - but this rarely happens unless you have a lot of debts and can't meet any repayment demands. This excellent Consumer guide explains bankruptcy (and the alternatives) in detail.

If you don’t agree with the amount, or even the business in which you apparently owe a debt, you can write a letter to the debtor outlining that you dispute the debt.

If you don’t believe you owe any debt to the collector in question, do a credit check to find out if there are any issues with identity theft on your report. If you don't recognise it, reach out to the company and raise a dispute.

If you do dispute the debt, Baycorp (and all debt collection agencies) must stop contact until the issue has been resolved. If they continue to pester you for payment, you have the right to reach out to the debtor to let them know about the situation. 

If you've defaulted before, it's likely the company that referred you to Baycorp will put you on an internal blacklist list. While no companies will publicly confirm they operate blacklists, it's widely understood they do as a way to protect themselves from further bad debt. 

If you have a history of missing payments, or have defaulted, you are more likely to be rejected when applying for new credit. It’s not personal, it’s simply lenders minimising their risk of unpaid debts.