Debt Collectors Licensing Act 1964

The Act’s core architecture rests on a set of defined legal concepts that determine scope, obligations and enforcement. The primary statutory definitions are in s 3 and drive who is captured and what duties follow.

• Debt collector (s 3). This is the central definitional gateway. It captures any person carrying on the business of collecting, requesting or demanding payment of debts on behalf of another for gain, whether or not they carry on other businesses, and whether alone or with others. It also captures those who advertise or notify that they carry on that business. The breadth includes natural persons and corporations. The Act does not limit the definition to particular kinds of debts or creditors; it focuses on the activity and the expectation of reward.

• Licence and licensee (s 3). A licence is a statutory authorisation to exercise the functions of a debt collector. The form, content and fee regime are prescribed (s 7). Licences issued to natural persons must record name, business and abode, while corporate licences must show the corporation’s name and principal place of business (s 7(2)). Prescribed fees and renewal periods apply (s 7(3); s 10A).

• Trust money and trust account (s 3; s 15). Trust money means any money collected or received by a person in the capacity of debt collector as agent for another. The Act requires prompt recording and payment into a specified bank trust account, detailing how trust funds must be handled, when balances must be paid to principals, and the form of cheques for withdrawals (s 15(1)‑(3)). Trust money receives statutory protection from creditors (s 15(6)).

• Fidelity bond/approved security (ss 20, 21). Before commencing business, a licensee must lodge with the Commissioner a fidelity bond or approved security of a specified minimum amount dependent on whether the licensee is a corporation or natural person (s 20(2)). The bond secures accounting for trust money and can be terminated by the insurer with notice, which temporarily suspends the licence until a replacement bond is lodged (s 21(1A)-(2)).

• Commissioner, Minister and Commissioner of Police. The Commissioner has administrative responsibility for licence forms, registry and decisions, and oversees disciplinary processes (s 7(1); s 8; s 12). The Commissioner of Police conducts character enquiries and may object to an application on specified statutory grounds (s 8(4), (5A)-(5C)). The Minister holds power to appoint auditors, revoke exemptions by regulation and to authorise persons to inspect bank accounts (s 16(1); s 19(1); s 26(f)).

• Enforcement and review mechanisms (ss 10, 11, 18-19, 24). The Act imposes criminal penalties for unlicensed activity and certain breaches. The Commissioner may initiate inquiries and, if appropriate, make allegations to the State Administrative Tribunal for orders including cancellation and disqualification (s 10). Applicants refused a licence may apply to the State Administrative Tribunal for review of the decision (s 11). Inspectorial powers enable examination of accounts and contracts, and the Minister may appoint an auditor to perform statutory audits at the licensee’s expense (s 18; s 19).

• Regulation-making power (s 26). The Governor may make regulations covering licensing, fees, advertising restrictions, prescribed charges for collection where debts are paid by instalments (with an upper cap of 2.5 per cent), and exemptions (s 26(a), (d), (f), (g)). Regulations may include penalties up to $5 000 (s 26(h)). The Act reserves to regulation a number of operational details, leaving some practical rules to subordinate law.

These concepts interlock. The licensing gate triggers trust account, fidelity bond and reporting duties. The Commissioner and police reports create an evaluative filter on character and fitness. Inspection, audit and tribunal powers create enforcement pathways that bridge criminal, administrative and civil outcomes. The Act treats trust money as distinct and protected, imposing both procedural (timing, cheques) and substantive consequences (creditor protection) for mishandling.

The Act identifies specific categories of persons and entities whose activity is captured, and also enumerates exemptions. It structures who bears costs, who decides, and who is entitled to certain protections.

Primary persons required to comply

• Debt collectors and prospective licensees. Any person carrying on the business of collecting, requesting or demanding payment of debts on behalf of another for reward is captured by the licensing requirement (s 3 definition; s 5 prohibition). This includes sole traders, partnerships and corporations engaged in debt collection.

• Licensees’ employees and agents. The Act treats employees’ authorised actions as the licensee’s responsibility. Records kept at any place of business are presumed to have been made by or with the authority of the debt collector (s 17(2)). Inspectors may require employees or agents with apparent control to produce documents and answer questions (s 18(2)).

Entities and persons specifically exempted from the Act (s 4)

• Legal practitioners. A legal practitioner is expressly excluded (s 4(a)). That exclusion preserves the practice of law where lawyers collect debts in the ordinary course.

• Public accountants acting in ordinary course. Public accountants are exempt when acting in their profession (s 4(b)).

• Court officers and enforcement officers. The sheriff, deputy sheriffs and officers appointed under Part IX of the Supreme Court Act 1935 acting in their duties are exempt; bailiffs or assistant bailiffs appointed under the Civil Judgments Enforcement Act 2004 are exempt (s 4(c), (d)).

• Insolvency officeholders. Liquidators, receivers and trustees acting pursuant to their duties are exempt (s 4(e)).

• Banks and ADIs. Banks, defined via reference to the Commonwealth Banking Act 1959 as ADIs (s 3), are exempt (s 4(f)). Bank managers, however, have statutory duties to disclose and permit inspection of accounts when authorised by the Minister (s 16).

• Friendly societies and trustee companies. Corporations that are friendly societies under the Life Insurance Act 1995 and trustee companies carrying on business under a State or Commonwealth Act are exempt (s 4(fa), (fb)).

• Officers or employees of exempt bodies. Persons acting in the ordinary course for any exempt person, body or authority are themselves exempt (s 4(g)).

• Persons exempted by regulation. The Governor may create exemptions or partial exemptions by regulation (s 4(h); s 26(f)).

Other parties affected by regulatory requirements

• Principals who instruct debt collectors. The Act prescribes that engagements to act must be in writing, signed by the principal or agent, for a licensee to be entitled to recover fees (s 13). Principals are therefore affected by documentation, timing and payment provisions for trust money (s 15).

• Debtors. The Act indirectly affects debtors by regulating the conduct of collectors, restricting charges where regulations prescribe an upper limit for instalment-paid debts (s 26(d)) and giving statutory protections over trust funds (s 15(6)).

• Banks and bank managers. Banks are exempt from being captured as collectors, but their managers have obligations to make accounts available to persons authorised by the Minister to inspect bank records related to licensees (s 16(1)‑(2)). Banks must therefore accommodate regulatory inspections.

• Insurance companies. Insurers issuing fidelity bonds approved by the Minister are implicated. A bond may be terminated by the insurer with statutory notice, triggering licence suspension for the licensee until a replacement bond is provided (s 21).

• The Commissioner and Commissioner of Police. These officers bear administrative burdens: the Commissioner must keep a public register (s 12), consider applications and police reports (s 8), and initiate inquiries and allegations to the State Administrative Tribunal (s 10). The Commissioner of Police must inquire into character and may lodge objections (s 8(4), (5A)).

Who pays and who decides

• Paying parties: applicants/licensees pay licence fees (s 7(3)), fidelity bond premiums (s 20(2)), costs of any Minister-appointed audit (s 19(1)), and prescribed penalties for late renewals if applicable (s 10A(4)). Fines for offences fall on non-compliant persons (s 5, s 6, s 14, s 15, s 16, s 17, s 18).

• Decision-makers: the Commissioner is the primary administrative decision-maker on licence forms, registrations and initial decisions (s 7, s 8, s 12); the Commissioner of Police supplies character reports and may object (s 8); the Minister can appoint auditors and approve insurers and bonds (s 19, s 20); the State Administrative Tribunal performs reviews and may cancel licences or order disqualifications (ss 10, 11).

The effect, therefore, is to create compliance obligations and costs across a supply chain: collectors and their insurers bear direct costs; banks are called upon to assist inspections; and principals and debtors face procedural changes in how collection fees and trust monies are documented and paid.

The Act sets a structured set of duties for licensees and certain third parties, and prescribes rights for principals, authorised inspectors and reviewers. The central duties, including procedural and timing obligations, and the statutory rights to inspection and review, are summarised below with section references.

Duties of prospective licensees and licensees

• Licence requirement. A person must not carry on the business of a debt collector, advertise that they do, or hold themselves out as willing to do so, unless licensed (s 5(1)). Breach is an offence with a specified fine (s 5(2)).

• Application content and supporting material. Applications must use a Commissioner-approved form (s 8(1)). Normally they must include testimonials as to character signed by at least three reputable persons and the prescribed fee (s 8(2A)); testimonials may not be required for renewals unless the Commissioner asks (s 8(10)). Fees are refundable if the application is withdrawn or refused (s 8(2B)).

• Character and fitness. Applicants must be of good fame and character, be fit and proper persons and be 21 or older (s 9(1)). For corporations, references to the applicant apply to the corporation’s directors (s 9(2)).

• Fidelity bond/approved security. A licensee must lodge and maintain a fidelity bond or approved security before carrying on business (s 20(1), (1A)). The Act sets minimum sums for corporations and natural persons with scope for regulations to increase those amounts (s 20(2)).

Trust accounting and handling of trust money (detailed procedural duties)

• Timely recording and deposit. Trust money must be recorded and paid into a trust account before the expiration of the next banking day on which banks are open in the State (s 15(1)(a)(i)-(ii)). This imposes a strict short-term cash management requirement.

• Withdrawal conditions. Money may not be withdrawn except for payment of authorized expenses, commissions and amounts lawfully due to the debt collector (s 15(1)(b)).

• Payment of balances. Licensees must, within 14 days of written demand by the principal, and in any event within 45 days of receipt of the trust money unless otherwise agreed in writing, pay the balance to the principal or their direction (s 15(2)).

• Cheque formalities. Drawings from trust accounts must be by the debt collector’s cheque. If the cheque is in respect of payment under s 15(2), it must be crossed, bear “not negotiable” and be payable to the person to whom the sum is payable (s 15(3)).

• Notification of trust account details. A debt collector must notify the Commissioner within 14 days of opening a trust account of the account name and bank, and of any subsequent changes (s 15(4)).

• Record keeping and balancing. Full and accurate records of trust money, particulars of withdrawals and payments, and monthly balancing are mandatory; records must be maintained to permit audits (s 17(1)(a)‑(c)). Failure is a criminal offence with a monetary penalty (s 17(1)).

Duties of third parties

• Banks and bank managers. A bank manager must disclose accounts held by a licensee to any person authorised in writing by the Minister to examine the account, on personal delivery of written demand, and must permit copy-taking (s 16(1)). Penalties apply for refusal (s 16(1)).

• Auditors. The Minister may appoint an auditor at the licensee’s expense to audit trust accounts and to report to the Minister (s 19(1)). That auditor has powers equivalent to the Auditor General in relation to the trust account (s 19(2)).

Rights and procedural protections

• Right to be heard on police objections. If the Commissioner of Police objects to a licence application, the Commissioner must notify the applicant and afford an opportunity to make submissions (s 8(5C)).

• Review rights. Applicants refused a licence may apply to the State Administrative Tribunal for review (s 11(1)). The Commissioner of Police may also apply for review if the Commissioner grants a licence despite objections (s 11(2)).

• Protection against self-incrimination. A person is not required under s 18 to answer any question or give information that tends to incriminate them (s 18(5)). This is an express statutory privilege in relation to inspection powers.

• Register access. The Commissioner must keep a public register of licences, renewals and cancellations. The register must be available for public inspection on payment of a prescribed fee (s 12(1)‑(2)).

Limitations and constraints

• No additional powers implied. Holding a licence does not confer any power beyond what a person would have had without the Act (s 6(1)). It is an offence to suggest otherwise (s 6(2)).

• Recovery of fees constrained. A person is not entitled to recover or retain fees for debt collection services unless they were licensed at the time and the engagement is in writing signed by the principal or their agent, and agreed fees are not exceeded (s 13(1)(a)-(c)). There is also a statutory refund mechanism on conviction where excess fees have been taken (s 14(3)).

• Regulation-made limits on charges. Regulations can prescribe the charges a debt collector may charge, including a maximum of 2.5 per cent on debts paid by instalments and a minimum charge (s 26(d)). An authorised cap could directly constrain revenue earned from particular collection methods.

Sanctions and remedies (rights exercisable on breach)

• Criminal penalties. The Act lists monetary penalties for key breaches: unlicensed operation (s 5(2)), implying extra powers (s 6(2)), false statements in applications (s 14(1)), demanding or retaining fees in excess of agreed amounts (s 14(2)), trust account breaches (s 15(5)), bank manager disclosure failures (s 16(1)), record-keeping failures (s 17(1)), obstruction of inspection (s 18(4)). The amounts are specified in the Act and as amended.

• Administrative orders. The State Administrative Tribunal may cancel a licence and disqualify a person from holding a licence permanently or for a specified period (s 10(2)). The Commissioner must notify the Commissioner of Police after a Tribunal order (s 10(4)).

• Civil remedies preserved. Convictions do not affect civil rights or remedies available to persons aggrieved; the Act expressly saves civil remedies (s 25).

These duties and rights create operational constraints on how collectors receive, store, withdraw and account for funds, how they must document engagements and how they interact with oversight officials. They also create enforcement pathways via criminal sanction, regulatory audit and administrative cancellation.

The Act combines criminal penalties, administrative enforcement and audit powers to encourage compliance. Enforcement is distributed across the Commissioner, Minister, Commissioner of Police, courts and the State Administrative Tribunal. The statute sets specified monetary penalties for individual offences, provides administrative remedies and prescribes inspection and audit powers.

Criminal penalties (monetary fines)

• Unlicensed conduct. A person who contravenes s 5 by carrying on or advertising the carrying on of debt collection without a licence is guilty of an offence. The penalty is a fine of $50 000 (s 5(2)). That is the principal criminal deterrent against operating without a licence.

• False representations about powers. A licence holder who suggests the licence confers powers other than the authority to carry on debt collection is guilty of an offence punishable by a fine of $25 000 (s 6(2)).

• False information in applications/documents. Knowingly making incorrect statements or omitting required particulars in an application or other document under the Act is an offence with a fine of $20 000 (s 14(1)).

• Demanding or retaining unauthorised fees. A licensee who demands, receives or retains an amount in excess of or not included in agreed fees for a service is guilty of an offence and liable to a fine of $20 000; upon conviction the court must order refund of the excess (s 14(2)-(3)).

• Trust account breaches. Failure to comply with the trust money duties under s 15(1)-(4) is an offence punishable by a fine of $25 000 (s 15(5)).

• Bank manager non-disclosure. A bank manager or principal officer who fails to disclose accounts to an authorised inspector on demand commits an offence punishable by a fine of $25 000 (s 16(1)).

• Record-keeping failures. Breach of the duty to keep full and accurate records and to balance monthly under s 17(1)(a)-(c) is an offence with a fine of $25 000 (s 17(1)).

• Obstruction of inspections. Wilfully delaying or obstructing authorised persons in inspections, refusing to produce required documents, refusing to furnish authorities and orders to bankers, or refusing to answer truthfully without lawful excuse is an offence on which the penalty is a fine of $25 000 (s 18(4)). Note the statutory protection against self-incrimination in s 18(5).

Administrative enforcement and disciplinary measures

• Commissioner inquiries and allegations. Any person may make a complaint in writing to the Commissioner about a licensee; the Commissioner may on receipt of a complaint, or on the Commissioner’s own initiative, investigate and, if appropriate, make an allegation to the State Administrative Tribunal that there is a ground for an order (ss 10(1), (1b), (1c)). Grounds include improper obtaining of a licence, conviction under the Act, fraudulent conduct, negligence or incompetence, contravention of fidelity bond provisions, and the statutory refusal grounds in s 9 (s 10(1b)).

• State Administrative Tribunal powers. On an allegation, the State Administrative Tribunal may order cancellation of a licence and disqualification from holding a licence either permanently or for a specified period (s 10(2)). Where a licence is cancelled, the licensee must return it to the Commissioner (s 10(2)(a)(i)). The Commissioner must notify the Commissioner of Police of a Tribunal order (s 10(4)). During disqualification a person is taken not to be the holder of a licence (s 10(5)).

• Review rights. Applicants refused licences can seek review by the State Administrative Tribunal (s 11(1)); the Commissioner of Police may seek review where the Commissioner grants a licence despite police objection (s 11(2)). This creates an oversight pathway for contested decisions.

Audit and inspection powers

• Inspection of records. Persons authorised in writing by the Minister may inspect all books and records required to be kept under the Act at reasonable times (s 18(1)). Authorised persons may require production of trust account documents, records of accounts, contracts and agreements and may take copies and require bankers’ authorities and answers to questions (s 18(2)-(3)).

• Protection against self-incrimination. Inspection powers are subject to an explicit privilege for not answering questions that would tend to incriminate the person (s 18(5)).

• Minister-appointed auditors. The Minister may appoint an auditor at the licensee’s expense where the Minister considers it desirable for public protection or to protect creditors. The auditor must audit the trust account for a specified period and deliver a report to the Minister (s 19(1)). The auditor has the Auditor General’s powers in relation to that trust account (s 19(2)).

Fidelity bond and suspension consequences

• Bond termination and suspension. An insurance company may terminate a fidelity bond by written notice to the licensee, the Commissioner and the Commissioner of Police, with at least 30 days’ notice (s 21(1A)-(1B)). On termination, the insurer remains liable for acts prior to termination and for due accounting of trust money received before the termination date (s 21(1C)). From the date of bond termination until a new bond is lodged and in force, the licence is suspended and the licensee is deemed not to be a licensee (s 21(2)). This creates immediate operational and compliance risk for licensees reliant on bond continuity.

Register, certificates and regulatory penalties

• Public register. The Commissioner must keep and make available a register of licences, renewals and cancellations; inspection is subject to a prescribed fee (s 12(1)-(2)). This creates transparency and aids enforcement by third parties.

• Evidentiary certificate. A certificate purportedly signed by the Minister stating a person was not licensed on a specified date is admissible evidence in proceedings for an offence under the Act (s 24). This eases proof in prosecutions.

• Regulations. The Governor may make regulations including penalties not exceeding $5 000 for breach of any regulation (s 26(h)). The Act also authorises regulations to cap charges for instalment-paid debts (s 26(d)), prescribe advertising regulation (s 26(g)), and set licensing fees and forms (s 26(a)).

Civil rights preserved

• The Act expressly preserves civil remedies. A criminal prosecution or conviction under the Act does not affect civil rights or remedies available to any person aggrieved by the offence (s 25).

Together, these provisions create a multi-layered enforcement regime that mixes criminal sanctions, administrative discipline and market-facing measures (public register, audit) and imposes direct costs on licensees for maintaining bonds, audits and compliance.

The Act cross-references Commonwealth and State statutes and allocates certain responsibilities to other statutory officers. Its operation must therefore be read in conjunction with those instruments to understand definitions, exemptions and administrative interactions.

Statutory definitions and cross-references

• Banking Act 1959 (Cth). The Act defines “bank” by reference to an ADI as defined in s 5 of the Commonwealth Banking Act 1959 (s 3). That cross-reference treats authorised deposit-taking institutions regulated under the Commonwealth banking framework as “banks” for purposes of the WA Act. The practical effect is that banks, so defined, are exempt from the debt collector licensing regime (s 4(f)).

• Fair Trading Act 2010 (WA). The definition of Commissioner is taken from the Fair Trading Act 2010 s 6 (s 3). The Commissioner under this Act therefore operates within the administrative structure established by the Fair Trading Act, which may affect delegation, reporting and administrative procedures. The compilation notes and amendments show this redefinition occurred with Acts Amendment (Fair Trading) and later standardisation amendments (compilation table).

• Supreme Court Act 1935 (WA). The sheriff and deputies appointed pursuant to Part IX of that Act are exempt when acting in their duties (s 4(c)). This situates enforcement officers under that separate court enforcement scheme outside the licensing requirement.

• Civil Judgments Enforcement Act 2004 (WA). Bailiffs or assistant bailiffs appointed under Part 7 Division 1 of that Act are exempt where acting pursuant to their duties (s 4(d)). This ensures court enforcement officers are not caught by licensing.

• Life Insurance Act 1995 (Cth) and other Commonwealth Acts. Corporations that are friendly societies under s 16C of the Life Insurance Act 1995 are exempt (s 4(fa)). Trustee companies operating under State or Commonwealth Acts are also exempt (s 4(fb)). The effect is to carve out entities regulated under specialised federal or state regimes.

Administrative tribunal jurisdiction

• State Administrative Tribunal. The Act delegates review and disciplinary jurisdiction to the State Administrative Tribunal for licence refusals and for allegations leading to cancellation or disqualification (ss 10, 11). The compilation notes reference the State Administrative Tribunal Act and transitional provisions; amendments in 2004 conferred jurisdiction to the SAT (compilation table; notes). Where the Commissioner refuses an application, the applicant may apply to the SAT for review (s 11(1)); the Commissioner of Police can apply to the SAT when the Commissioner grants a licence despite police objection (s 11(2)). This integration aligns licensing appeals and disciplinary processes with the State’s administrative tribunal system.

Interaction with auditing and public sector audit powers

• Auditor General Act 2006 (WA). A Minister-appointed auditor auditing a licensee’s trust account has the same powers as the Auditor General under the Auditor General Act 2006 when exercising functions in relation to that trust account (s 19(2)). This cross-reference imports strong audit powers into the private trust account audit context where the Minister deems it necessary.

Regulatory scope and subordinate law

• Regulations under s 26. The Act delegates substantive operational rules to regulations, including licensing fees, forms, exemptions and prescriptive controls on permitted charges where debt is paid by instalments, with an explicit cap of 2.5 per cent (s 26(d)). The Act therefore sets the framework but authorises detailed regulatory controls that can materially constrain market conduct.

Preservation of civil remedies

• The Act clarifies that criminal proceedings or convictions do not affect civil rights or remedies (s 25). That preserves concurrent or alternative civil litigation options for aggrieved principals or debtors, even where criminal enforcement has occurred.

Administrative records transition and prior local courts

• Transitional arrangements. The compilation notes include a regulation (State Administrative Tribunal Regulations 2004 r 46) dealing with transitional custody of registers and fidelity bonds held by Local Court clerks and transfer to the Commissioner (notes). This shows an administrative handover between former local court custodians and the Commissioner under the new SAT-era arrangements.

Amendment and reprint history

• The compilation table lists a sequence of amendments that intersect with other legislation. For instance, amendments to standardise formatting, to confer SAT jurisdiction and to implement Fair Trading Act changes alter definitions and administrative processes (compilation table). Users must consult the compilation table and the Acts cited for the precise date of relevant changes.

Practical interaction effects

• Entities regulated elsewhere are exempt: lawyers, bank ADIs, insolvency practitioners and court enforcement officers are excluded, which reduces duplication of licensing where other regulatory regimes apply (s 4). However, those entities may still be subject to other statutory duties, and the Act’s trust-account provisions operate where a person actually satisfies the debt collector definition and is not otherwise exempt.

• Regulatory overlap risks. Because the Commissioner references the Fair Trading Act for its definition and the SAT for review, administrative procedures and standards of review will follow those instruments. Cross-jurisdictional issues may arise where a collector operates interstate or has a federal regulator; the Mutual Recognition (WA) Amendment in 2022 noted in the compilation table may be relevant for interstate licensing (compilation table entries).

In sum, the Act is designed to operate in a network of related statutes and administrative bodies, importing definitions and enforcement tools from Commonwealth and State law, and relying on regulations and the SAT for operational detail and adjudication.

The Act has been amended multiple times since 1964. The compilation table in the source lists the key statutes that changed the Act, the short titles, assent dates and commencement dates. The amendments altered definitions, enforcement mechanisms, administrative arrangements and procedural details, including transferring review jurisdiction to the State Administrative Tribunal. The main amendment milestones visible in the compilation table are:

• Initial enactment and commencement. Debt Collectors Licensing Act 1964 (108 of 1964), assented 23 December 1964, commenced 1 May 1965 (compilation table).

• Early amendments. Debt Collectors Licensing Act Amendment Act 1966 (21 of 1966) (compilation table). The Decimal Currency Act 1965 also affected some sections (compilation table).

• 1985 changes. Acts Amendment (Financial Administration and Audit) Act 1985 (98 of 1985), with amendments commencing 1 July 1986 (compilation table). Section 19’s audit powers were amended by the 1985 Act (see s 19 amended note).

• 1999 financial sector reform. Acts Amendment and Repeal (Financial Sector Reform) Act 1999 (26 of 1999) amended s 3 and came into effect 1 July 1999 (compilation table). This amendment changed defined terms including the definition of “bank” (s 3 amended).

• 2003-2005 reform and sentencing amendments. Sentencing Legislation Amendment and Repeal Act 2003 (50 of 2003), Acts Amendment and Repeal (Courts and Legal Practice) Act 2003 (65 of 2003) and Courts Legislation Amendment and Repeal Act 2004 (59 of 2004) made various changes with staggered commencements (compilation table). Notably, the State Administrative Tribunal (Conferral of Jurisdiction) Amendment and Repeal Act 2004 (55 of 2004) transferred specified jurisdiction to the SAT effective 1 January 2005 (compilation table; notes).

• 2006 financial legislation changes. Financial Legislation Amendment and Repeal Act 2006 (77 of 2006) made further technical amendments effective 1 February 2007 (compilation table).

• 2008 Legal Profession Act link. Legal Profession Act 2008 (21 of 2008) produced amendments that came into operation 1 March 2009 (compilation table).

• 2010 standardisation and fair trading. Standardisation of Formatting Act 2010 (19 of 2010) changed formatting and structure; Acts Amendment (Fair Trading) Act 2010 (58 of 2010) altered the Commissioner definition and related administrative matters, with effect from 1 January 2011 (compilation table).

• 2016 licensing provisions amendment. Licensing Provisions Amendment Act 2016 (44 of 2016) made significant changes, including insertion of s 10A on licence duration and renewal, and modernised application/fee procedures; these amendments commenced 1 July 2017 (compilation table).

• 2019 consumer protection changes. Consumer Protection Legislation Amendment Act 2019 (25 of 2019) further amended penalties and record-keeping provisions, with commencement 1 January 2020 (compilation table). Several sections were updated in 2019, including fines and offences (see amendments notes to ss 5, 6, 14, 15, 16, 17, 18).

• 2020 COVID-19 omnibus amendment. COVID‑19 Response and Economic Recovery Omnibus Act 2020 (34 of 2020) made a minor amendment with effect 12 September 2020 (compilation table).

• 2022 mutual recognition and legal profession uniform law. Mutual Recognition (Western Australia) Amendment Act 2022 (7 of 2022) and Legal Profession Uniform Law Application Act 2022 (9 of 2022) made amendments effective 1 July 2022 (compilation table). These amendments affected definitions and exemptions (s 4 and s 3 amendments listed).

• 2023 directors’ liability reform. Directors’ Liability Reform Act 2023 (9 of 2023) made amendments effective 5 April 2023 (compilation table).

• Deletions. Sections 22 and 23 have been deleted: s 22 deleted by No. 25 of 2019 s 24; s 23 deleted by No. 9 of 2023 s 52 (as noted in the Act text).

Reprints and consolidations

• The Act has been reprinted on multiple occasions, with reprint dates marked in the compilation table (1972, 2003, 2006, 2011). Each reprint captures and consolidates amendments up to the specified date.

Notes and transitional provisions

• The compilation notes mention that the State Administrative Tribunal Act 2004 provisions and regulations dealt with transitional issues relevant to this Act when SAT jurisdiction was conferred (notes). The State Administrative Tribunal Regulations 2004 r 46 includes a procedure for Local Court clerks to transfer registers, notices and fidelity bonds to the Commissioner (notes).

Practical consequence of amendment history

• The shifts over time reflect a progression from a narrow licensing framework to integration with broader consumer protection, administrative review and financial audit regimes. Amendments reallocated administrative responsibilities to the Commissioner under the Fair Trading framework, introduced minimum licence durations and renewal processes (s 10A), updated penalty levels, and embedded SAT review and disciplinary jurisdiction.

For precise amendment text and timing, users should consult each amending Act cited in the compilation table and the consolidated reprint contemporary to their point in time.

The source provided is the text of the Act and its compilation notes. It cites no cases and does not furnish a jurisprudential history. There are, however, statutory avenues and institutions that will generate litigation or administrative adjudication under the Act.

Statutory adjudicative routes likely to produce disputes

• State Administrative Tribunal. Section 11 expressly provides for review by the State Administrative Tribunal of Commissioner decisions refusing licences, and for the Commissioner of Police to seek review when the Commissioner grants a licence despite police objection (s 11). Section 10 authorises the Commissioner to make allegations to the SAT, and the Tribunal may cancel licences and disqualify persons if grounds are proved (s 10(1c), (2)). SAT decisions will therefore constitute the Act’s principal body of administrative adjudication, and are the likely source of reported decisions concerning licence refusals, cancellations and disqualifications.

• Courts and criminal prosecutions. Offences under the Act, such as unlicensed operation (s 5), false statements in applications (s 14(1)), unauthorised fee retention (s 14(2)), trust account breaches (s 15(5)), and obstructing inspections (s 18(4)), are prosecutable in court. Convictions attract specified fines and may trigger ancillary remedies such as refund orders imposed by the court (s 14(3)). Criminal proceedings will therefore generate court decisions on the interpretation and application of offence provisions.

• Civil litigation. Section 25 preserves civil remedies, so principals or creditors aggrieved by a collector’s conduct may bring civil claims irrespective of criminal enforcement. The Act does not limit civil causes of action, and courts could determine disputes about the validity of fee agreements, misappropriation of trust money, breach of fiduciary or agency duties, and claims under the fidelity bond. Section 21(3) explicitly permits persons, with the Minister’s written approval, to sue on fidelity bonds, with a two-year limitation from the cause of action (s 21(4)). Civil litigation thus flows from statutory duties and bond-based remedies.

Absence of cases in the Act text

• The Act and compilation notes do not name any judicial or tribunal decisions. Users seeking precedent must search the State Administrative Tribunal and West Australian court databases for decisions that interpret the Act’s provisions, especially decisions about “fit and proper” criteria (s 9), the scope of trust money duties (s 15), and the interplay between criminal sanctions and civil remedies (s 25).

Practical implications for litigators and compliance advisers

• Anticipate SAT case law on licensing criteria and disciplinary grounds. Because the SAT has explicit jurisdiction for reviews and disciplinary matters (ss 10, 11), precedent on procedural fairness, evidentiary standards, the weight to be given to police objections and the scope of “fit and proper” will develop in SAT decisions.

• Criminal prosecutions may raise evidentiary issues. The Act includes an evidentiary provision allowing a Minister-signed certificate to be evidence that a person was not licensed on a specified date (s 24). Defence counsel will need to consider the certificate’s weight, possible challenges to its authenticity and circumstances where other documentary or oral evidence is relevant.

• Bond-related litigation access is conditional. Litigation to sue on a fidelity bond requires the Minister’s written approval (s 21(3)). This procedural gate may affect access to bond proceeds and may prompt strategic engagement with the Minister’s office.

Users preparing litigation searches should target SAT decisions after the 2004 conferral of jurisdiction, and criminal and civil judgments applying the Act’s duties and penalties, while noting the statutory evidentiary and procedural features described above.

The Act contains several provisions that can create compliance traps, timing risks or operational discontinuities for collectors and their clients. These are practical issues that can generate liability or business disruption if not managed proactively.

1. Strict prohibition to collect without a licence and evidentiary ease of proof (s 5; s 24)

• A person who carries on debt collection, advertises or holds themselves out without a licence commits an offence with a $50 000 fine (s 5(2)). A Minister-signed certificate stating a person was not licensed at a specified date is admissible evidence in proceedings (s 24), which can simplify prosecutorial proof. The risk: informal early-stage collection activity, especially by start-ups, can expose operators to heavy fines and relatively simple evidentiary proof.

2. Recovery of fees is conditional on being licensed at the time and having a signed written engagement (s 13)

• Section 13 prevents recovery or retention of fees unless the collector was a licensee at the time the service was performed and the engagement is in writing signed by the person on whose behalf the service was done (s 13(1)(a)-(b)). The risk: an unlicensed or partly-documented collection arrangement can lead to unrecoverable fees, even if work was performed. This affects contractual drafting and demands strict procedural compliance before work begins.

3. Very short timeframe to deposit trust money and strict cheque formalities (s 15(1), (2), (3))

• Trust money must be recorded and paid into a trust account before the end of the next banking day on which banks are open in the State (s 15(1)(a)). Withdrawals have defined permissible purposes (s 15(1)(b)), payments to principals must be made within 14 days of written demand and within 45 days generally unless otherwise agreed (s 15(2)), and cheques for such payments must be crossed and marked “not negotiable” (s 15(3)). The risk: cash-flow timing errors and non-compliant cheque forms can result in criminal penalties of $25 000 (s 15(5)) and can cause practical disputes with principals or trigger audits.

4. Bond termination suspends the licence automatically until fresh security is lodged (s 21(1A)-(2))

• An insurer can terminate a fidelity bond on 30 days’ written notice. From the termination date, the licence is suspended until a new bond is lodged and in force (s 21(1A)-(2)). The risk: reliance on continuity of the bond is operationally critical. Licence suspension can halt a business’s lawful operations and cause sudden revenue loss. Licensees must manage fidelity bond renewals proactively and coordinate insurer communication with the Commissioner.

5. Minister-appointed audits at licensee’s expense and Auditor General powers (s 19)

• The Minister can appoint an auditor at the licensee’s expense where the Minister considers it necessary for public protection or to protect creditors (s 19(1)). That auditor has the same powers as the Auditor General in relation to the trust account (s 19(2)). The risk: an adverse audit can expose serious compliance failures and create material costs for remediation and potential disciplinary action.

6. Police involvement in character assessments, and the Commissioner’s duty to consider police reports (s 8(4)-(5B))

• The Commissioner is required to notify the Commissioner of Police on receipt of an application; police must inquire into character and suitability and may object on specified statutory grounds which mirror refusal grounds in s 9 (s 8(4), (5A)-(5B)). The risk: an adverse police report can either block initial licensing or create grounds for later cancellation. Applicants should ensure police checks and character testimonials are robust.

7. Corporations evaluated through their directors (s 9(2))

• When an applicant is a corporation, references to the applicant in s 9 apply to the directors (s 9(2)). The risk: director conduct and histories are material; corporate applicants cannot hide director unsuitability behind corporate personality.

8. Advertising and representation constraints (s 6; s 26(g))

• It is an offence for a licensee to suggest or imply any power beyond the business of debt collecting (s 6(2)). Regulations may further regulate methods and manners of advertising where a debt collector may make known their business (s 26(g)). The risk: overreaching marketing claims or improper representations about enforcement powers can attract fines and regulatory scrutiny.

9. Refund of application fee where application withdrawn or refused (s 8(2B))

• The Act requires prescribed fees to be refunded if an application is withdrawn or refused (s 8(2B)). While this is favourable, the practical gotcha is that there may be non-prescribed administrative or opportunity costs in seeking a licence that are not refundable.

10. Limitations on prescribed licence periods and late renewal mechanics (s 10A)

• Licences must be issued for prescribed periods not less than 12 months (s 10A(1)-(2)). Renewal can be back-dated if applied for within 28 days of expiry and the prescribed late penalty is paid; the renewed licence takes effect on the day after the prior licence expired (s 10A(4)-(5)). The risk: a small window and prescribed late fee regime means operators must monitor renewal dates carefully to avoid lapse that could interrupt rights to recover fees (s 13) and risk unlicensed activity.

11. Statutory privilege in inspections but obligations to produce documents and answer questions (s 18(2), (5))

• Inspectors can compel production of contracts, records and authority to bankers and ask questions; however, persons are not required to answer questions that tend to incriminate them (s 18(2), (5)). The risk: while incriminatory answers can be refused, failure to produce documents or provide reasonable bankers’ authorities can itself generate obstruction offences with fines up to $25 000 (s 18(4)).

12. The Minister’s discretion over approval of persons to sue on fidelity bonds (s 21(3))

• Suing on a fidelity bond requires the Minister’s written approval (s 21(3)). The risk: access to bond proceeds is not an automatic private right; it is gated by ministerial approval which could slow or complicate recovery for aggrieved principals.

13. Regulation-prescribed charge caps and minimums (s 26(d))

• Regulations may prescribe maximum and minimum charges for instalment-paid debts including a maximum of 2.5 per cent of the debt (s 26(d)). The risk: collectors whose business model relies on percentage fees may need to adjust pricing or seek alternative remuneration methods when regulations are promulgated.

Addressing these “gotchas” requires operational controls: documented written engagements, active bond and renewal management, tight trust accounting and bank liaison procedures, pre-application police check mitigation, and readiness to comply with audits and inspections.

Compliance under the Act requires an operational plan spanning corporate governance, licensing procedures, financial controls, documentation and interaction with regulators and banks. The following steps map statutory obligations to practical tasks, with references to the relevant sections.

1. Determine if the activity is captured and whether an exemption applies

• Assess your activity against the definition of debt collector in s 3. If you collect, request or demand payment on behalf of others for reward, you are likely captured. Check s 4 to determine if an exemption applies, for example if you are a legal practitioner, public accountant in the ordinary course, a bank ADI, a court enforcement officer, liquidator/receiver/trustee, a trustee company, or a friendly society as defined by federal law.

2. Prepare and lodge a licence application

• Use the Commissioner-approved form (s 8(1)). Assemble the required testimonials as to character (typically three reputable persons) unless the Commissioner waives the requirement or the application is a renewal and the Commissioner does not require new testimonials (s 8(2A); s 8(10)). Pay the prescribed fee; the Act provides for refund of the fee if the application is withdrawn or refused (s 8(2B)). Anticipate that the Commissioner will notify the Commissioner of Police for a character inquiry (s 8(4)).

3. Address character and fit-and-proper expectations

• Ensure the applicant (and, for corporations, the directors) meet the s 9 criteria: good fame and character, fit and proper, and age 21 or over (s 9(1)‑(2)). Proactively obtain references, clean background checks and documentary evidence on prior business conduct to respond to any police objections. If the Commissioner of Police objects on statutory grounds, the Commissioner must notify the applicant and afford a chance to make submissions (s 8(5A), (5C)).

4. Lodge a fidelity bond or approved security before commencing business

• Before carrying on debt collection, lodge with the Commissioner a fidelity bond or approved security in the prescribed form and sum (s 20(1)-(2)). The Act prescribes minimum bond amounts: $10 000 for corporations and $6 000 for natural persons, subject to regulationary increases (s 20(2)). Manage insurer relationships and ensure continuity; insurers may terminate bonds on 30 days’ notice, and a terminated bond suspends the licence until a replacement is lodged (s 21(1A)-(2)).

5. Establish a proper trust account and bank arrangements

• Open a trust account in a bank conducting business in WA whose account designation includes the words “trust account of” and your name (s 3 definition of “to pay into a trust account” and “trust account”). Record and deposit any trust money before the close of the next banking day on which banks are open (s 15(1)(a)). Notify the Commissioner in writing within 14 days of opening the trust account, and promptly notify any changes (s 15(4)). Ensure bank procedures allow for producing account information to authorised inspectors as required (s 16).

6. Implement trust-account controls and payments processes

• Maintain separate and accurate records distinguishing trust money from monies on your own account, and ensure accounts are kept to permit auditing and are balanced monthly (s 17(1)(a)-(c)). Withdraw funds only for permitted expenses identified in s 15(1)(b). When paying balances to principals, comply with the 14-day written-demand rule or 45-day default rule unless extended by written agreement (s 15(2)). Ensure cheques drawn on trust accounts for payments under s 15(2) are crossed, “not negotiable” and payable to the principal (s 15(3)).

7. Maintain records and prepare for inspection and audit

• Keep full and accurate records of all trust money receipts, withdrawals and payments, and ensure they are auditable (s 17(1)(a)-(b)). Prepare to produce books, contracts and written records to authorised inspectors under s 18(2), and to respond to reasonable requests for banker authorisations. Note the privilege against self-incrimination for persons answering incriminating questions (s 18(5)), but avoid obstructing inspections (s 18(4)) that attract significant fines.

8. Manage regulatory reporting and public register requirements

• Be aware that the Commissioner maintains a register of licences, renewals and cancellations accessible to the public for a prescribed fee (s 12). Keep licence, trust account and bond details up to date to ensure the register’s accuracy, as regulations may require provision of information to assist register accuracy (s 26(da)).

9. Comply with advertising and fee regulation

• Observe s 6 which prohibits implying any authority beyond debt collection. Follow any regulations governing advertising permitted under s 26(g). Monitor regulations that may prescribe permissible charges, including a 2.5 per cent cap on instalment-collected debts and possible minimum charges (s 26(d)).

10. Ensure renewal and licence duration compliance

• Track licence expiry. Licences are issued or renewed for prescribed periods not less than 12 months (s 10A(1)-(2)). If late, apply for renewal within 28 days and pay any prescribed late penalty so the renewed licence back-dates to avoid lapses (s 10A(4)-(5)). Remember that being unlicensed at the time of performing a service impacts entitlement to recover fees (s 13).

11. Prepare for dispute resolution and administrative review processes

• Understand the State Administrative Tribunal’s role for licence refusals and disciplinary allegations (ss 10, 11). Keep contemporaneous records to support submissions in the event of a police objection or complaint. If a complaint is made, expect the Commissioner to investigate and possibly make an allegation to the SAT (s 10(1b)-(1c)). If the SAT cancels a licence, disqualification periods can be permanent or for specified durations (s 10(2)).

12. Insurer and bond governance

• Confirm that the fidelity bond is in the prescribed form and approved by the Minister (s 20(2)). Establish procedures with insurers to ensure notice of termination is addressed in advance to prevent automatic suspension of the licence (s 21(1A)-(2)). Be aware of the limitation period for actions on a fidelity bond: two years after the date the cause of action arose (s 21(4)).

13. Implement internal compliance training and audit readiness

• Train employees and agents on the statutory duties, cheque formality, trust account segregation and record-keeping. Institute internal audits to detect errors early and remediate prior to Minister-appointed audits (s 19), which are at the licensee’s expense.

14. Contracting and engagement documentation

• Ensure every engagement to act as a debt collector is in writing, signed by the creditor or their authorised agent, and that the contract sets out agreed fees which must not be exceeded (s 13). Maintain copies of signed engagements and authorisations to produce in inspections.

15. Liaise with the Commissioner and police proactively

• Where possible, engage the Commissioner early to confirm requirements; respond fully to police inquiries and submit supporting testimonials and police clearance materials to reduce the risk of objection (s 8(4)-(5C)).

By following these concrete steps and mapping statutory requirements to operational controls , bond management, trust-account procedures, documented engagements, audit and inspection readiness, and renewal calendars , a business can align its processes with the Act’s prescriptive obligations and administrative structures. Non-compliance carries criminal fines, potential licence suspension and reputational and commercial consequences through inability to recover fees.