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Thursday 1 July 2021

21-159MR Debt collection company convicted of engaging in unlicensed credit activities

Black Collections Pty Ltd ACN 615 105 345 (Black Collections) pleaded guilty and was convicted of engaging in unlicensed credit activities and holding out that it held a licence that would authorise it to collect on consumer debts when it did not. The company operated as a debt collection agency in Double Bay, New South Wales.

An ASIC investigation found that between about 5 October 2016 and about 12 March 2018, Black Collections collected consumer credit debts without holding an Australian credit licence (ACL) (20-261MR). At the time, Black Collections did not qualify for an exemption from the need to hold an ACL. It was also found that on 16 December 2016, Louise Medley, on behalf of Black Collections, held out that Black Collections held a Master CAPI license and was therefore authorised to collect on consumer credit, when it was not.

Black Collections was convicted and fined $8,800 for engaging in unlicenced credit activity and $4,400 for holding out that it held a licence that would authorise it to collect on consumer debts, when it did not.

It is also alleged that between about 16 December 2016 and about 13 March 2018, the director and sole shareholder of Black Collections, Louise Medley of Bondi Beach, NSW, made fraudulent representations, which resulted in her obtaining a financial advantage by deception.

Black Collections and Ms Medley appeared in the Downing Centre Local Court, Sydney on 17 June 2021. 

The matter involving Ms Medley was adjourned to the Downing Centre Local Court, Sydney for a contested hearing on 18 October 2021.

The matters are being prosecuted by the Commonwealth Director of Public Prosecutions.

Background

Black Collections was convicted of contravening s29(2) and s30(3) of the National Consumer Credit Protection Act 2009. The maximum penalty for contravening s29(2) is 200 Penalty units or two years imprisonment or both and for s30(3) is 50 penalty units or one year imprisonment or both.

Ms Medley is charged with two counts of contravening s192E(1)(b) of the Crimes Act 1900 (NSW).  The maximum penalty for contravening s192E(1)(b) is 10 years imprisonment.  When dealt with in the NSW Local Court, the maximum penalty is 2 years imprisonment.

Last updated: 01/07/2021 03:22