Criminal charges against Australian debt collection company Panthera Finance dismissed | Debt collection

Charges against one of Australia’s largest debt collection firms have been dismissed after the company successfully argued it was not technically engaged in debt collection.

At a committal hearing in Melbourne magistrates’ court on Tuesday, magistrate Michelle Hodgson dismissed the charges against Panthera Finance and ordered Consumer Affairs Victoria to pay costs.

Parramatta-based Francom Group acquired Panthera Finance in December 2024 after it was placed into administration by its financial backers Brookfield.

Francom was not charged with any crime.

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Consumer Affairs Victoria had brought criminal proceedings against Panthera after a 2020 federal court ruling found Panthera had unfairly harassed three consumers over their debts and was fined $500,000.

The regulator argued that the court’s decision made Panthera Finance a “prohibited person” under state protection debt collection laws.

This follows a Guardian Australia investigation which found the company attempted to circumvent the blacklisting by using a related entity by claiming it was “business as usual” despite a federal court order.

At the time, the regulator said the action was necessary to ensure debt collection activity in the state remained legal, saying people facing financial difficulties “may be very vulnerable to poor debt collection practices”.

In his defense heard by the court last week, Panthera argued that the prosecution did not present “a shred of evidence” that the debts it collected were debts belonging to another person, and therefore it was not technically prohibited.

Under section 3 of the Australian Consumer Law and Fair Trading Act, a debt collector is defined as someone who “will collect, attempt to collect or demand payment of debts owed to another person” “in return for a fee or reward”.

Panthera Finance’s legal counsel argued that it was not technically engaged in collecting debts owed to a third party, given that it had “purchased” the debts. Instead, he claimed, Panthera Finance was collecting the debt it now owes.

Hodgson said he could consider only those elements of the definition of debt collection set out in the law “and the law alone.”

He said that in this definition, which cannot be expanded, “the parliament used a definition according to who the debt belongs to.”

As a result, he denied the charges and ordered him to pay costs, the amount of which has not yet been determined, to Consumer Affairs Victoria.

Georgina Antoun, CEO of Francom Group, welcomed the decision, saying it provided certainty “to our clients, customers and employees” that Panthera was not banned.

“Francom is committed to fulfilling its ambition to transform perceptions of the debt collection industry,” Antoun said.

“We are passionate about supporting clients with vulnerabilities, educating our team on how to best inform our clients about the long-term effects of debt, and helping unlock financial freedom for everyone.”