Australian Debt Collector Pays $59,400 After Regulator Raises Harassment, Misleading Notice Concerns
Australian debt collection company Marshall Freeman Collections Pty Ltd has paid $59,400 in penalties after the Australian Competition and Consumer Commission raised concerns that the company unduly harassed consumers and sent misleading debt collection letters. Marshall Freeman also provided the ACCC with a court-enforceable undertaking that requires changes to its collection and compliance practices.
The Aug. 14 enforcement action provides a compliance reminder for the broader receivables management industry, particularly regarding disputed debts, consumer information requests and representations about potential legal action.
ACCC Raises Concerns Over Collection Practices
According to the ACCC, the conduct occurred between July 2024 and June 2025. The regulator issued Marshall Freeman three infringement notices after raising concerns about how the company handled certain consumer accounts.
The ACCC said Marshall Freeman continued demanding payment from consumers without adequately responding to disputes or requests for information concerning the alleged debts.
The regulator also alleged that Marshall Freeman sent letters indicating it had received instructions from creditors to commence legal proceedings when those instructions had not been given.
ACCC Commissioner Luke Woodward said harassment by debt collectors can place significant pressure on consumers and interfere with their ability to fairly resolve disputed debts.
“It is misleading and in breach of the Australian Consumer Law for a debt collector to send a letter threatening legal action that they are not instructed or permitted to take,” Woodward said.
Marshall Freeman Agrees to Compliance Changes
Marshall Freeman provided a court-enforceable undertaking in which the company admitted its conduct breached, or was likely to breach, the Australian Consumer Law, according to the ACCC.
Under the undertaking, the company committed to improving its procedures for handling consumer disputes and inquiries, updating its debt collection processes and implementing a consumer law compliance program.
Marshall Freeman provides debt collection services on behalf of creditors and receives fees and commissions for recovering debts from consumers and businesses.
The ACCC also directed debt collectors and creditors to its joint debt collection guideline with the Australian Securities and Investments Commission. The guidance addresses issues including contact with consumers, disputed debts, vulnerable consumers and representations concerning legal action.
Enforcement Highlights Risks Around Legal Threats and Disputed Debts
The action highlights two areas of collection compliance that extend beyond the Australian market: escalation language and dispute handling.
Collection communications that reference litigation require controls to ensure the statements accurately reflect the creditor’s authorization and the collector’s actual ability and intention to pursue the stated action. Likewise, continuing collection efforts without adequately addressing a consumer’s dispute or request for information can create regulatory risk.
The Marshall Freeman matter also comes amid broader ACCC scrutiny of debt collection practices. In June, the regulator filed Federal Court proceedings against ARMA Group Holdings Pty Ltd and Force Legal Pty Ltd, alleging misleading or deceptive conduct involving more than 320,000 debt notices. Those allegations remain subject to the court proceeding.
