One of Australia’s leading debt collection firms, Panthera Finance, reportedly attempted to recover over 200,000 individual debts from consumers in Victoria while allegedly banned from operating in the state. According to Guardian Australia, this activity raises questions about the legality of Panthera’s operations following legal action initiated by Consumer Affairs Victoria (CAV) in 2024.
CAV accuses Panthera Finance of violating Victorian fair trading laws by engaging in debt collection activities despite being classified as a “prohibited person.” The case is currently set for a committal hearing at the Melbourne Magistrates Court today. This legal proceeding will determine if Panthera Finance Pty Ltd was indeed a prohibited entity, following a directive from CAV in June 2022 demanding an immediate cessation of business activities in Victoria.
Despite the ban, Panthera allegedly continued its operations by using a different entity, Panthera Finance (Vic) Pty Ltd. Records indicate that between May 2022 and June 2024, the company contacted a total of 221,729 accounts for debt collection in Victoria. Sources suggest that during this period, Panthera Finance and its affiliates collected more than $40 million from consumers while allegedly disregarding the state’s prohibition.
In a statement, a spokesperson for Francom Group, which acquired Panthera Finance in December 2023, asserted, “Francom categorically denies the accuracy of the alleged facts the Guardian has presented.” They emphasized that, due to the ongoing court proceedings, it would be inappropriate to comment further.
A letter dated November 2022 to Panthera’s clients revealed the company had claimed it was “business as usual” in Victoria, despite the regulator’s ban. It sought permission from the state’s Business Licensing Authority to continue operations, stating, “Our debts being handled in Victoria have been assigned to Panthera Finance (Vic) Pty Ltd, which is not subject to these discussions.” The letter indicated that the new entity was a fully owned subsidiary of Panthera’s holding company, PF Australia.
For Panthera Finance (Vic) to legally collect on debts, it was required to establish a debt sale agreement for the transfer of debts to the new entity. Reports suggest this agreement was never executed. In a client communication framed as a “question and answer” format, the company addressed potential recourse for consumers, asserting, “Panthera is confident it has abided with all the relevant laws regarding its operations in Victoria.”
Under the Australian Consumer Law and the Fair Trading Act, a court may order refunds to affected consumers if a breach is confirmed. A previous investigation by Guardian Australia indicated that Panthera allegedly continued to purchase debts from energy and telecommunications providers even after receiving explicit warnings from CAV that such actions could be criminal.
Documents reviewed by Guardian Australia show Panthera signed debt purchase agreements with companies including Energy Australia, Simply Energy, IPF Digital, Optus, and Origin Energy throughout 2021 and 2022. In December 2023, Panthera Finance sold a debt portfolio valued at $24 million to Pioneer Credit, which included debts from the Commonwealth Bank and affected Victorian customers.
The prohibition against Panthera stemmed from a 2020 federal court ruling that found the company had unduly harassed consumers for debts, resulting in a fine of $500,000. This ruling classified Panthera Finance as a “prohibited person” under state debt collection laws.
While Francom Group has not commented on the specific customer numbers or the total amount collected during the alleged ban in Victoria, it is understood that the company now manages a debt portfolio worth approximately $1.4 billion. About a third of this debt, nearly $450 million, is believed to be located in Victoria. Although the five-year prohibition on Panthera was lifted in March 2024, Francom has yet to resume debt collection in the state, pending the court’s decision.
Francom Group, which took over Panthera Finance after it was placed into administration by its financial backers, Brookfield, is owned by lawyer Charles Antoun. His wife, Georgina Antoun, serves as the company’s chief executive. Neither Francom nor the Antouns have been accused of any wrongdoing.
In response to inquiries regarding the debt collection activities in Victoria from 2022 to 2024, 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.”
The company has also announced the closure of its Brisbane office, stating this decision is due to “operational requirements.” A spokesperson indicated that the company is consulting with 40 employees in the Brisbane office, with plans to offer relocation assistance to retain staff throughout the transition.
As this situation unfolds, the implications for consumers and the debt collection industry in Victoria remain significant, particularly regarding the potential for refunds and changes in operational practices.
