Debt Collector Panthera Faces 5-Year Ban Over Alleged Breach Of Restrictions

Panthera, Australia's largest privately owned debt collection firm, is facing a five-year restriction in operations in Victoria after allegedly breaching a ban on its transactions in the state, which was imposed after a federal court found the company forced consumers to pay disputed debts.

The ban dates back to March 2020 when it was found that the debt collection giant harassed three customers into paying the flawed debt in an outright violation of the Australian Consumer Law, The Guardian reported.

Consumer Affairs Victoria (CAV) charged Panthera on the grounds of flouting the rules on Monday, as per a statement from the federal body.

"Consumer Affairs Victoria has taken legal action against a major debt collector for allegedly operating in Victoria while prohibited," the regulator said in a statement. "We allege Panthera Finance breached Victorian fair trading laws by engaging in debt collection here when they were not allowed to do so."

The decision led to an automatic five-year ban on Panthera. The organization could have remained in operation had it applied for a special permission from the Business Licensing Authority in Victoria which they didn't, CAV told The Guardian.

Nicole Rich, the director of CAV, emphasized that debt collection must be conducted legally.

"Many people are facing financial challenges as cost-of-living pressures continue to rise and it is already stressful having to manage tight household budgets," she said. "People in this situation can be very vulnerable to poor debt collection practices. We will continue to investigate and take action to ensure compliance with Victoria's debt collection protections as a priority."

The case will be presented to Melbourne court on Aug. 19 for a filing hearing.