National Australia Bank has made changes to its debt collection practices following concerns by the regulator that its collection letters may have been misleading, deceptive or unconscionable.The Australian Securities and Investment Commission was unhappy that NAB was sending collection letters using letterheads for Fairhalsen Collections and Brunswick Collection Services.ASIC's view was that the letters may have given the impression that NAB had sold, outsourced or otherwise escalated a debt when this was not the case. Both entities are divisions of the bank but this was only disclosed in fine print at the bottom of the letters.ASIC was also concerned that letters sent to some customers stated that if the debt was not paid legal proceedings would commence or a debt collector might visit the customer's home, when such action would only be considered at a later stage of collection.NAB has removed references to the two companies from its collection letters. It has also removed the references to legal action and face-to-face contact with a debt collector.ASIC deputy chairman Peter Kell said in a statement: "Creditors and collectors are entitled to accurately explain the consequences of non-payment of a debt but the consequences must not be misrepresented or overstated."In annual reviews released last week the Financial Ombudsman Services and the Credit & Investments Ombudsman both highlighted poor debt collection practices as systemic issues they have had to deal with over the past year.