Debt collection could become much dearer
Geoff Knight, of debt recovery and collection service CIA, said many landlords would give up on recovering money they were owed from errant former tenants if the new fees scheme was adopted.
A public consultation paper on the new fees was put out last month and submissions close at the beginning of November. The paper says that the cost recovery levels in the court are too low and current fees do not reflect the registry or judicial effort involved.
But Knight said the Government appeared not to have given enough thought to the impact on tenancies of the proposed increase in fees.
For example, it is proposed that an order for examination, to work out the ability of a tenant to repay debt, will now cost $180, up from $108, excluding the service fee involved in getting a person to court.
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