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Scoop
6 days ago
- Scoop
Debt Collector Convicted And Fined For Misleading Conduct
Law Debt Collection (LDC) and its director John Stuart Campbell have been ordered to pay a total of $115,500 in fines and emotional harm reparations for breaching the Fair Trading Act. Mr Campbell and his company pleaded guilty to making misleading representations when collecting debt, following a Commerce Commission prosecution. Competition, Fair Trading and Credit General Manager Vanessa Horne says debt collectors have the right to pursue money legitimately owed but must do so fairly and honestly and not exploit their position over vulnerable consumers. 'Not only are debt collectors in a considerable position of power, which we believe in this case was exploited, most people have limited knowledge about the rules of what debt collection agencies can do when collecting debt,' Ms Horne says. 'Debt collectors must not take advantage of this and must not make misleading representations when collecting debts. 'Debt collectors will often be working with vulnerable consumers, making these cases even more important. We want consumers to know they're not powerless in these situations. 'At a time when more Kiwis are in debt, this case should serve as a warning to all debt collectors that they must follow the rules or the Commission will take action. 'Mr Campbell and LDC crossed a line when they misled debtors about possible consequences of failing to pay, and what debt collectors could do when chasing payment. This likely caused unnecessary distress,' Ms Horne says. Mr Campbell and LDC misled debtors by lodging, or threatening to lodge, credit defaults in situations where they had no right to do so. 'A credit default can have a significant impact on a borrower's credit score, making it harder to get approved for loans, credit cards and mortgages. This is an incredibly serious threat,' Ms Horne says. Mr Campbell referred to threat of credit defaults as his 'greatest tool' and 'if the debtor really needs finance, they will have to settle the amount.' In some cases, LDC also wrongfully claimed collections costs of up to $1,507 on top of debts. 'Debtors being told absolute statements about what they must pay are entitled to assume that what they are being told is true,' Ms Horne says. Background LDC is a debt recovery business, founded by Mr Campbell in 1986. Its website describes the business as having grown from a small debt recovery agency into a specialised firm providing a range of debt recovery and credit services. LDC was instructed on approximately 1,600 debt collection matters per year. LDC has traded through various entities during this time, including Law Debt Collection (NZ) Limited and Law Debt Collection Limited, which are the entities subject to the prosecution. The Court has fined Mr Campbell and his businesses, Law Debt Collection (NZ) Limited and Law Debt Collection Limited a total of $115,500 (including emotional harm reparation payments for some victims). The Commission commenced an investigation into LDC and Mr Campbell's conduct following a number of complaints and previously issued a warning to him in 2019 for likely harassment, coercion and misleading representations. The Commission has investigated a number of other debt collection companies. In December 2023, the Commission also issued a warning to debt collection company Intercoll Holdings Limited (now trading as DebtManagers), for making misleading representations, which likely breached the Fair Trading Act.
1News
21-07-2025
- 1News
Noel Leeming charged over alleged Fair Trading Act breaches
Technology and appliance retailer Noel Leeming says it is "baffled" and "perplexed" by the Commerce Commission filing charges alleging it misled consumers on its promise to match prices. The Commerce Commission announced it had filed criminal charges in the Auckland District Court against the wholly-owned subsidiary of The Warehouse Group Limited, alleging it had breached the Fair Trading Act. Deputy chairperson Anne Callinan said its "price promise had many limitations and conditions which weren't made obvious to customers". "For over a decade Noel Leeming has prominently promoted their 'Price Promise,' which is their commitment to match any competitors' price. We believe their price promise claim was misleading and in breach of the Fair Trading Act," she said. "Price match advertising gives the impression that customers will be able to show up and get a match for competitor's prices. It's crucial that businesses promoting any price match offer factor in the overall impression of the claims they make, and that all information is clear to customers." The Commission has also filed charges against Noel Leeming regarding promotions where the advertised product or price was different to what could be purchased, and allege the company gave incorrect or misleading information about consumers' rights under the Consumer Guarantees Act when customers complained about faulty products. Callinan said Noel Leeming had previously been "one of our most complained about traders, and we were concerned about the range of issues consumers raised". Noel Leeming's chief operating officer Jason Bell said the company was "baffled" by the decision to press charges. "We firmly maintain that we have committed no offence and will vigorously defend this," he said in a statement. Bell said "our terms and conditions are fair and presented just like other retailers, and when we can't price match, we often don't get the sale". "We're perplexed by the Commission's claim that price matches were difficult to obtain, when over 250,000 Kiwis saved money with our Price Promise between 2019-2021. "Price matching is widely used by the industry, and it helps drive competition, and without it, Kiwis will end up paying more. He said if the business doesn't get something right, it would work hard to ensure fair resolutions for our customers. The morning's headlines in 90 seconds, Mama Hooch rapists appeal, Ukraine's new message to Russia, and Jason Momoa's plans here. (Source: Breakfast) "Some of the additional matters raised by the Commission occurred during the Covid-19-pandemic, when all businesses experienced unprecedented pressure, and our team went to extraordinary lengths to help Kiwis access the products they needed, handling over ten million transactions. "It is concerning that significant public resources and time have been spent on this matter for over three years, while overlooking more pressing potential harm to consumers from overseas online retailers operating outside of the rules. The system needs to evolve and hold all retailers selling to New Zealanders to the same standards of care." Callinan said "price match advertising gives the impression that customers will be able to show up and get a match for competitor's prices. "It's crucial that businesses promoting any price match offer factor in the overall impression of the claims they make, and that all information is clear to customers." The maximum penalty for breaches of the Fair Trading Act, is $600,000 per charge for businesses.
Otago Daily Times
20-07-2025
- Otago Daily Times
Noel Leeming 'perplexed' over misleading advertising charges
Photo: ODT Files The Commerce Commission has filed criminal charges against retailer Noel Leeming over what it says is a misleading price matching promotion. Noel Leeming is a subsidiary of The Warehouse Group. "For over a decade Noel Leeming has prominently promoted their 'Price Promise,' which is their commitment to match any competitors' price. We believe their price promise claim was misleading and in breach of the Fair Trading Act," Commerce Commission deputy chair Anne Callinan said. "We believe Noel Leeming's price promise had many limitations and conditions which weren't made obvious to customers and made any price matches difficult to obtain. "Fine print should not contradict advertising claims or be used to conceal important information which could be critical to a person's decision to buy goods or services." Noel Leeming chief operating officer Jason Bell said the company "firmly" maintained it had not committed an offence and would vigourously defend itself against multiple charges of misleading customers under the Fair Trading Act. "We're perplexed by the Commission's claim that price matches were difficult to obtain, when over 250,000 Kiwis saved money with our Price Promise between 2019-2021," he said. "Our terms and conditions are fair and presented just like other retailers, and when we can't price match, we often don't get the sale." Callinan said Noel Leeming had previously been one of the regulators most complained about traders involving a range of issues raised by consumers. The commission had also filed charges against Noel Leeming regarding promotions where the advertised product or price was different to what could be purchased. Other charges against Noel Leeming involved incorrect or misleading information about consumers' rights under the Consumer Guarantees Act, when customers complained about faulty products. "We expect big businesses to be clear and honest in their advertising," she said. "Consumers should be able to trust the information they receive when they are buying goods and services." The maximum penalty for a single breach of the Fair Trading Act was $600,000 for businesses.
