Queensland-based debt collection company Panthera Finance, which operates nationwide, was prohibited from operating in Victoria after it was penalised for harassing people over disputed debts.
Consumer Affairs Victoria on Monday lodged a court case against the company, claiming it breached local fair trading laws by engaging in debt collection when it was not allowed to do so.
Victorians continue to face financial challenges from the cost of living crisis and while it is fair to try to collect debts, it must be done legally, Consumer Affairs Victoria director Nicole Rich said.Â
"People in these situations can be very vulnerable to poor debt collection practices," she said.
"We will continue to investigate and take action to ensure compliance with Victoria's debt collection protections as a priority."
In 2020, Panthera was ordered to pay $500,000 in fines after the federal court ruled the company harassed three people to pay debts they did not owe, in breach of Australian consumer laws.
The court found Panthera misled one person by charging them $100 to have a default listing removed from their credit file despite the listing being incorrect and could be removed for free under the Privacy Act.
"All three consumers were subjected to repeated and intrusive calls from Panthera, and had to take multiple steps to prove they did not owe the alleged debt," ACCC Commissioner Sarah Court said at the time.
Victorian laws prohibit an entity from undertaking debt collection for five years if they have engaged in undue harassment under the Australian Consumer Law.
The company could have applied for permission to collect debt while the ban was in place from the Business Licensing Authority, but was not granted permission.
Parts of the business were put into voluntary administration in June.
Panthera has been approached for comment.
The matter will be heard at Melbourne Magistrates Court on August 19.
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