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The sydney Morning Herald. 4/2/06. Kirsty Needham

Debt collector offers payback.

More than 500 people pressured by debt collectors to pay old debts which many could not recall will be reimbursed as part of a crackdown on heavy-handed collection tactics.

The A.C.C.C. said the debt collection company, Collection House had agreed to pay $660,000 to 504 people after collecting debts over six years old.

Collection House had bought the old debts from Australian guarantee corporation in 2001.

The NSW Consumer Credit Legal centres principal solicitor,Katherine Lane,said banks and telephone companies outsourcing debt collection had led to an increase in complaints.

Ms Lane said most consumers were not aware that debts more than six years old were extinguished under NSW law if recovery action had not taken place, or that debt collectors need to provide evidence of the debt.

RAB