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Australia debt transferred to Ireland

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  • 20-09-2019 10:48pm
    #1
    California Dreamer
    Registered Users Posts: 2,597 ✭✭✭


    Asking for a friend

    Lived in Australia. Had a small loan. About $2k left to pay. Was paying it down when they lost job and moved back to Ireland.

    Had contact from Oz debt collection agency. Nothing for a few months.

    Then contact was made by an Irish collection agency. No idea how they got her number.

    Is it a shakedown or will it affect Irish credit rating?


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    #2
    utyh2ikcq9z76b
    Closed Accounts Posts: 1,213 ✭✭✭utyh2ikcq9z76b


    California Dreamer wrote: »
    Asking for a friend

    Lived in Australia. Had a small loan. About $2k left to pay. Was paying it down when they lost job and moved back to Ireland.

    Had contact from Oz debt collection agency. Nothing for a few months.

    Then contact was made by an Irish collection agency. No idea how they got her number.

    Is it a shakedown or will it affect Irish credit rating?

    I'd go with shakedown, just ignore. Had something similar happen, Irish agency contacted, never replied, never heard from them again


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    #3
    fritzelly
    Registered Users Posts: 17,533 ✭✭✭✭fritzelly


    Have they sold the debt to them?

    Will affect your credit rating if they register you as a defaulter


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    #4
    California Dreamer
    Registered Users Posts: 2,597 ✭✭✭California Dreamer


    The intention is there to pay it at some stage. More when she is earning decent money here.

    She may return to Oz some day and if its not paid her credit rating will be buggered but the Irish company calling was a surprise.


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    #5
    California Dreamer
    Registered Users Posts: 2,597 ✭✭✭California Dreamer


    fritzelly wrote: »
    Have they sold the debt to them?

    Will affect your credit rating if they register you as a defaulter

    Not me, female friend of mine. On a resident visa.


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    #6
    fritzelly
    Registered Users Posts: 17,533 ✭✭✭✭fritzelly


    Tell them to make an offer to pay it off at whatever weekly/monthly rate - it's not that much to clear - 10 odd euro a week or something


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    #7
    California Dreamer
    Registered Users Posts: 2,597 ✭✭✭California Dreamer


    fritzelly wrote: »
    Tell them to make an offer to pay it off at whatever weekly/monthly rate - it's not that much to clear - 10 odd euro a week or something

    Not really answering what I want to know. This is Australian debt. How can it affect someone here?


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    #8
    Allinall
    Registered Users Posts: 6,732 ✭✭✭Allinall


    California Dreamer wrote: »
    Not really answering what I want to know. This is Australian debt. How can it affect someone here?

    Debt belongs to a person. Not a country.

    If you owe money, it doesn’t matter where in the world you are. You still owe the money.


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    #9
    fritzelly
    Registered Users Posts: 17,533 ✭✭✭✭fritzelly


    California Dreamer wrote: »
    Not really answering what I want to know. This is Australian debt. How can it affect someone here?

    You didn't answer the question
    They sell the debt to an Irish collection agency, you ignore them, they take you to court to recover the money
    They probably bought the debt for 30% of the sum - ask for a discount to pay it off in one go.


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    #10
    Mr. Incognito
    Registered Users Posts: 9,798 ✭✭✭Mr. Incognito


    Throw demands in the bin. They prey on ignorance.

    Only the ICB holds credit scores and this is limited to irish registered financial institutions. Debt collection agencies cant do squat to a credit rating.

    The legal costs of converting a foreign debt to ireland would be far in excess of 2k.

    Zero chance of it being enforced.


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    #11
    garhjw
    Closed Accounts Posts: 1,424 ✭✭✭garhjw


    They could just repay their debt?


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    #12
    Glass fused light
    Registered Users Posts: 1,576 ✭✭✭Glass fused light


    California Dreamer wrote: »
    Asking for a friend

    Lived in Australia. Had a small loan. About $2k left to pay. Was paying it down when they lost job and moved back to Ireland.

    Had contact from Oz debt collection agency. Nothing for a few months.

    Then contact was made by an Irish collection agency. No idea how they got her number.

    Is it a shakedown or will it affect Irish credit rating?

    Yep it's a shakedown :rolleyes:

    So your friend is off to a running start with her white collar crime spree. The posh bit when they fill in the paperwork to get the money and now doing a runner rather than pay it back. It's chump change in respect to what is being written off in the court these days and unless the company have a policy of litigation it not going to end up in court. But as they have traced her back to Ireland they have up to 6 years to chase the debt.


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    #13
    L1011
    Registered Users Posts: 69,013 ✭✭✭✭L1011


    Mr. Incognito wrote: »
    Throw demands in the bin. They prey on ignorance.

    Only the ICB holds credit scores and this is limited to irish registered financial institutions. Debt collection agencies cant do squat to a credit rating.

    The legal costs of converting a foreign debt to ireland would be far in excess of 2k.

    Zero chance of it being enforced.

    The Cental Credit Register has existed for a while now and covers more than the ICB. this won't be covered though


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    #14
    Padre_Pio
    Registered Users Posts: 5,220 ✭✭✭Padre_Pio


    Mr. Incognito wrote: »
    Throw demands in the bin. They prey on ignorance.

    Only the ICB holds credit scores and this is limited to irish registered financial institutions. Debt collection agencies cant do squat to a credit rating.

    The legal costs of converting a foreign debt to ireland would be far in excess of 2k.

    Zero chance of it being enforced.

    What would those legal costs be?


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    #15
    6541
    Registered Users Posts: 1,950 ✭✭✭6541


    Complete shakedown, no financial agreements between Ireland and Australia. Back in the day it was common practise for irish to get credit cards and max them out before leaving Australia.

    Think of if this way, people don't even pay fines in Northern Ireland. Bin that letter or frame it for future laughs.


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    #16
    California Dreamer
    Registered Users Posts: 2,597 ✭✭✭California Dreamer


    There is/was no intention to run up a stack of debt and then leave the country. Its 2k off a 20k loan that she stopped paying after she lost her job and had left Oz. Sure when she eventually returns home the debt will still be there waiting for her but its not enforceable in Ireland is what I wanted to find out.


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    #17
    Del2005
    Registered Users Posts: 18,993 ✭✭✭✭Del2005


    California Dreamer wrote: »

    She may return to Oz some day and if its not paid her credit rating will be buggered but the Irish company calling was a surprise.

    Then she'll need to deal with the debt. While our laws are a joke for debt recovery, the fact that it's been sold has already probably ruined her chances of getting back to Oz.


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    #18
    longgonesilver
    Registered Users Posts: 734 ✭✭✭longgonesilver


    Did she buy an asset with the 20k?

    Is it still in Australia?


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    #19
    California Dreamer
    Registered Users Posts: 2,597 ✭✭✭California Dreamer


    longgonesilver wrote: »
    Did she buy an asset with the 20k?

    Is it still in Australia?

    I don't have that information. I know once your debt is sold to a collection agency in Australia, your credit rating is buggered for 6 years.


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    #20
    California Dreamer
    Registered Users Posts: 2,597 ✭✭✭California Dreamer


    Del2005 wrote: »
    Then she'll need to deal with the debt. While our laws are a joke for debt recovery, the fact that it's been sold has already probably ruined her chances of getting back to Oz.

    She is Australian so don't think that will be a problem.


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    #21
    tvjunki
    Registered Users Posts: 602 ✭✭✭tvjunki


    So the person is Irish citizen moved to Australia and worked there for a few years. Got a loan and stopped paying. The Moved back to Ireland they now looking for payment. Yes it will affect her here. If she tried to get a loan mortgage etc here she had to say where she was the last few years. Bank statement tax payslips in Australia proving she worked there. They will do a credit check and find the debt. Don't ignore it as it will affect her for the next 6years or more.

    I know a situation where a couple went Ireland credit union got 20k loan and went to Australia. The Cu went after them and got attachment to Australia wages. Still paying now and that is more than 6years.


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    #22
    6541
    Registered Users Posts: 1,950 ✭✭✭6541


    I lived in Australia for 5 years during the boom. Banks were giving out credit cards with zero collateral. I must know hundreds of Irish that maxed out credit cards and then left.


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    #23
    California Dreamer
    Registered Users Posts: 2,597 ✭✭✭California Dreamer


    tvjunki wrote: »
    So the person is Irish citizen moved to Australia and worked there for a few years. Got a loan and stopped paying. The Moved back to Ireland they now looking for payment.

    No, she is Australian.


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    #24
    tvjunki
    Registered Users Posts: 602 ✭✭✭tvjunki


    California Dreamer wrote: »
    No, she is Australian.


    If that is the case she is Australian citizen living in Ireland so on a work permit or permit of some kind. If her work permit is not renewed or she wants to go back to Australia then it will be there for her plus interest and penalties. 2k can easily rack back up to 20k plus all the legal fees.
    She should contact them and set up a payment plan. Its 2k after all and she has paid 18k of the 20k. They will agree a lower payment if she can prove she cannot afford the current payment terms. She should contact the original lender and ignore the debt agency and come to an agreement.


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    #25
    my3cents
    Closed Accounts Posts: 9,764 ✭✭✭my3cents


    tvjunki wrote: »
    If that is the case she is Australian citizen living in Ireland so on a work permit or permit of some kind. If her work permit is not renewed or she wants to go back to Australia then it will be there for her plus interest and penalties. 2k can easily rack back up to 20k plus all the legal fees.
    She should contact them and set up a payment plan. Its 2k after all and she has paid 18k of the 20k. They will agree a lower payment if she can prove she cannot afford the current payment terms. She should contact the original lender and ignore the debt agency and come to an agreement.

    Nice scare tactics. Australia have very similar contract laws to Ireland so if the debt isn't acknowledged for 6 years it can't be enforced.

    https://debtrecoveryqld.com.au/how-long-can-debt-chased-australia/


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    #26
    tvjunki
    Registered Users Posts: 602 ✭✭✭tvjunki


    my3cents wrote: »
    Nice scare tactics. Australia have very similar contract laws to Ireland so if the debt isn't acknowledged for 6 years it can't be enforced.

    https://debtrecoveryqld.com.au/how-long-can-debt-chased-australia/

    It is not scare tactics. This can happen and the way banks are lending at the moment the chances of getting a loan or mortgage would be slim.There is a default for €2k debt. In the mean time the debt will increase with penalty and charges.

    At the end of the day the debt has to be paid. She would have to stay here for 6years or go back to Australia and not pay a penny but when she goes for another loan or a mortgage the bank here or in Australia will ask for information and it will all come out that she defaulted and that will affect her borrowing power. After the 6years the debt would no longer be 2k. Would anyone really chance it.


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    #27
    my3cents
    Closed Accounts Posts: 9,764 ✭✭✭my3cents


    tvjunki wrote: »
    It is not scare tactics. This can happen and the way banks are lending at the moment the chances of getting a loan or mortgage would be slim.There is a default for €2k debt. In the mean time the debt will increase with penalty and charges.

    At the end of the day the debt has to be paid. She would have to stay here for 6years or go back to Australia and not pay a penny but when she goes for another loan or a mortgage the bank here or in Australia will ask for information and it will all come out that she defaulted and that will affect her borrowing power. After the 6years the debt would no longer be 2k. Would anyone really chance it.

    They can add on as many charges as they like (but not if the debt has been sold on) because after 6 years it doesn't matter anyway.

    The fact its already been logged as a bad debt on whatever system Australia use probably means it pegged at 2k anyway. In Ireland the debt collection agencies can't add on extra charges so if the debt is 2k it isn't going to go up no matter how much you'd like it too.


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    #28
    Padre_Pio
    Registered Users Posts: 5,220 ✭✭✭Padre_Pio


    my3cents wrote: »
    They can add on as many charges as they like (but not if the debt has been sold on) because after 6 years it doesn't matter anyway.

    The fact its already been logged as a bad debt on whatever system Australia use probably means it pegged at 2k anyway. In Ireland the debt collection agencies can't add on extra charges so if the debt is 2k it isn't going to go up no matter how much you'd like it too.

    Just note that if you EVER acknowledge or pay anything towards the debt, that 6 year limit resets.


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