One of Australia’s largest debt collecting firms attempted to claw back more than 200,000 individual debts in Victoria while allegedly banned from doing so by the state’s regulator, Guardian Australia can reveal.
Affected consumers who paid the company could be entitled to refunds if the collection activity is found to be in breach of the state ban.
Consumer Affairs Victoria (CAV) launched legal action against Panthera Finance in 2024, alleging the company breached Victorian fair trading laws by engaging in debt collection while deemed a “prohibited person”.
Parramatta-based Francom Group bought Panthera Finance last December and said it would be seeking to resolve the legal proceedings against Panthera “as quickly as possible”.
The case, which will determine whether Panthera Finance Pty Ltd was a prohibited entity, is listed for a committal hearing at the Melbourne magistrates court today.
After receiving a letter in June 2022 from the executive director of CAV instructing the company to “immediately cease engaging in any business activities in Victoria”, Panthera continued its debt collecting activities in the state using a different entity: Panthera Finance (Vic) Pty Ltd.
According to figures seen by the Guardian, a total of 221,729 accounts were contacted for collection in Victoria between May 2022 and June 2024.
Sources have told Guardian Australia that from mid-2022 until the end of 2024 when it was bought by Francom, Panthera Finance and its associated companies successfully collected more than $40m in debt from tens of thousands of consumers in Victoria while allegedly flouting the ban.
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A spokesperson for Francom said: “Francom categorically denies the accuracy of the alleged facts the Guardian has presented. As this matter is before the court it would be wholly inappropriate to comment further.”
A letter sent in November 2022 to Panthera’s clients seen by the Guardian shows the company claimed it was “business as usual” in the state despite the ban from the state regulator as it sought permission from the state’s Business Licensing Authority to resume trading.
“Our debts being handled in Victoria have been assigned to Panthera Finance (Vic) Pty Ltd, which is not subject to these discussions. Panthera Finance (Vic) is a fully owned subsidiary of Panthera’s holding company PF Australia. This means it is business as usual for Panthera’s Victorian operations,” the statement said.
For Panthera Finance (Vic) to have lawfully collected on the debt, it is understood the company needed to have undertaken a debt sale agreement to have it transferred to the new entity. It is understood this did not occur.
In the statement to clients, which is framed in a “question and answer” format, the company canvasses the prospect that consumers may have recourse to challenge the debt collected during this time.
One of the questions on the document is: “Will consumers you collected debt on in Victoria have recourse to challenge the debts you have collected from them?”
The answer is: “Panthera is confident it has abided with all the relevant laws regarding its operations in Victoria.”
Under the Australian Consumer Law and Fair Trading Act, a court may make an order for refunds to be paid to affected consumers if a breach is found to have occurred.
A Guardian Australia investigation last year revealed that Panthera allegedly continued to buy debt from energy and telco providers weeks after receiving direct warnings from Consumer Affairs Victoria that doing so could amount to a criminal offence.
Documents seen by the Guardian show that debt purchase agreements were signed by Panthera with Energy Australia, Simply Energy, IPF Digital, Optus and Origin Energy throughout 2021 and 2022.
In December 2023 Panthera Finance also sold a debt portfolio to Pioneer Credit for $24m made up of credit card and loan debt that had originated from the Commonwealth Bank. This debt portfolio is understood to have included Victorian customers.
The Victorian prohibition came after a 2020 federal court ruling found that Panthera had unduly harassed three consumers for debts and was fined $500,000. The court’s findings that Panthera Finance breached federal consumer law made it a “prohibited person” under the state’s debt collection laws.
Francom would not comment on the customer numbers, the amount of debt Panthera collected while allegedly banned in Victoria or the forthcoming court action. It also declined to comment on whether it would be prepared to offer refunds to customers.
CAV also declined to comment on whether it would be seeking refunds as part of current proceedings.
Francom is understood to now have a total debt book worth $1.4bn, made up of unpaid debt bought from banks and other lenders, as well as from major telco and energy companies. About a third of this – close to $450m – is understood to be in Victoria.
The five-year prohibition placed on Panthera lifted in March this year, however Francom is yet to resume its debt collection activities in Victoria, pending the outcome of the court action.
Francom Group, which took over Panthera Finance after it was placed into administration by its financial backers Brookfield, is owned by the lawyer Charles Antoun. His wife, Georgina Antoun, is the company’s chief executive. Neither Francom nor the Antouns are accused of any wrongdoing.
When Francom took over Panthera Finance, the company announced it had the “ambition to transform the perceptions and practices of the debt collection industry”.
In response to questions from the Guardian about debt collection activities in Victoria from 2022 to 2024, Georgina Antoun said: “All allegations against Panthera Finance by CAV occurred under prior ownership.
“When we took over, we immediately set about transforming the company and aligning its debt practices with Francom’s, which are underpinned by strong moral and ethical values.”
The company would not comment on how much debt Panthera Finance (Vic) Pty Ltd had collected from consumers during the period Panthera Finance was banned.
“Out of respect to the current judicial process, which is actively before the Court, we will not be commenting further,” Antoun said.
The company has also told staff it will be closing its Brisbane office, with a spokesperson telling The Guardian this was due to “operational requirements”.
It said it was consulting with 40 people in the Brisbane office, but its “intention is to retain all staff throughout this process by offering relocation and relocation assistance”.
Multiple former Panthera staff are understood to have left Francom Group this year.
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