One of the biggest lies in debt collection is when a collector tells you the burden of proof debt falls on you. You say “I don’t owe that,” and they fire back with “Well, prove it. Send us evidence. Until then, you still owe us.” That’s completely, demonstrably wrong — and the Federal Court has confirmed it.

The Law Is Clear: They Must Prove You Owe It

The ACCC/ASIC Debt Collection Guideline states it explicitly: it is misleading to state or imply that the debtor must prove they are not liable for the debt. In legal proceedings, the burden of proof lies with the person alleging the debt is owed.

That means them. Not you.

If you tell a debt collector “I don’t owe this,” they have to investigate your claim. They have to prove you do owe it. And until they do, collection activity should be suspended. If they keep calling after you’ve disputed the debt, they’re not just being pushy — they’re potentially breaking the law.

The Panthera Finance Case: Court-Confirmed Harassment

In ACCC v Panthera Finance, three consumers were harassed to pay debts they said they didn’t owe. The company repeatedly insisted the debtors “disprove their liability.” The Federal Court held that this conduct was designed to intimidate and demoralise — and constituted undue harassment.

The Australian Financial Complaints Authority (AFCA) can help mediate disputes about debts you believe you don’t owe. But when a collector is actively harassing you and reversing the burden of proof, having a law firm in your corner sends a much stronger message.

If a debt collector tells you to “prove you don’t owe it” — they’re using an illegal tactic that’s been struck down by the Federal Court. The burden of proof is on them, not you. And if they keep harassing you after you’ve disputed the debt, a law firm with 16 years of experience can make them stop.