One of Australia's largest debt collection firms, Panthera Finance, is facing legal action after allegedly pursuing more than 200,000 individual debts in Victoria while formally banned from operating in the state, Guardian Australia can reveal.
The case, which could see consumers who paid the company entitled to refunds, highlights serious concerns about regulatory compliance in the debt collection industry.
The Alleged Breach and Legal Action
Consumer Affairs Victoria (CAV) launched legal proceedings against Panthera Finance in 2024, alleging the company breached Victorian fair trading laws by continuing debt collection activities while deemed a 'prohibited person'.
The prohibition came after a 2020 Federal Court ruling found Panthera had unduly harassed three consumers for debts, resulting in a $500,000 fine. This finding automatically made the company a prohibited entity under Victoria's debt collection laws.
Despite receiving a formal letter in June 2022 from CAV's executive director instructing it to 'immediately cease engaging in any business activities in Victoria', Panthera allegedly continued its operations through a different entity: Panthera Finance (Vic) Pty Ltd.
The Scale of Collection During Ban Period
According to figures obtained by the Guardian, the company contacted 221,729 accounts for collection in Victoria between May 2022 and June 2024.
Sources indicate that from mid-2022 until its acquisition by Francom Group in December 2024, Panthera Finance and its associated companies successfully collected more than $40 million from tens of thousands of Victorian consumers while allegedly flouting the ban.
Guardian Australia understands that Panthera allegedly collected about $60 million from more than 50,000 consumers in Victoria during the period it was supposedly banned from operating.
Corporate Restructuring and Client Communications
In a letter sent to clients in November 2022, seen by the Guardian, Panthera claimed it was 'business as usual' in Victoria despite the regulator's ban. The company stated it had assigned Victorian debts to Panthera Finance (Vic) Pty Ltd, which it claimed was not subject to the prohibition.
However, for this transfer to be lawful, the company needed to have undertaken proper debt sale agreements, which sources indicate did not occur.
The client communication, framed in a question-and-answer format, directly addressed whether consumers might challenge debts collected during this period. Panthera responded: 'Panthera is confident it has abided with all the relevant laws regarding its operations in Victoria.'
New Ownership and Ongoing Proceedings
Parramatta-based Francom Group purchased Panthera Finance last December after the company was placed into administration by its financial backers Brookfield. Francom announced it would seek to resolve the legal proceedings 'as quickly as possible'.
The company is owned by lawyer Charles Antoun, with his wife Georgina Antoun serving as chief executive. Neither Francom nor the Antouns are accused of any wrongdoing related to the period before their acquisition.
When Francom took over Panthera Finance, the company announced its 'ambition to transform the perceptions and practices of the debt collection industry'.
Georgina Antoun stated: '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.'
A spokesperson for Francom categorically denied the accuracy of the alleged facts presented by the Guardian, adding that it would be inappropriate to comment further while the matter is before the court.
Potential Consumer Refunds and Industry Impact
Under the Australian Consumer Law and Fair Trading Act, a court may order refunds to be paid to affected consumers if a breach is found to have occurred.
CAV declined to comment on whether it would be seeking refunds as part of current proceedings, while Francom would not comment on whether it would prepare to offer refunds to customers.
The case, which will determine whether Panthera Finance Pty Ltd was indeed a prohibited entity, is listed for a committal hearing at the Melbourne Magistrates Court.
Despite the five-year prohibition on Panthera lifting in March this year, Francom has yet to resume debt collection activities in Victoria, pending the outcome of the court action.
The proceedings represent a significant test of Victoria's debt collection regulations and could have substantial implications for how prohibited entities are monitored and enforced against in the financial services sector.
