The Australian Competition and Consumer Commission has instituted Federal Court proceedings against Pippa Sampson, principal lawyer at Goddard Elliott, for alleged misleading and deceptive conduct when representing video stores in small debt recovery.
The ACCC alleges that from at least July 2010, Pippa Sampson made misleading or deceptive representations in four debt collection letters and notices posted to addressees including:
- if the debt was not paid and the video stores issued legal proceedings against the addressee, this would necessarily result in the addressee having to pay significant legal costs. However legal costs may not be recovered except in certain circumstances such as when a creditor is successful in legal proceedings and when the court makes orders for the payment of costs. Also the Magistrates Court Act 1989 (Vic) and equivalent legislation in other States and Territories provide that legal costs cannot be recovered for small debt claims except in special circumstances
- debtors had been served with a court document when they had not.
- unless the debt was paid or the addressee was successful in defending himself/herself in any legal proceedings, Goddard Elliott could enter judgment without obtaining an order from the court. However judgment can only be entered by the court after legal proceedings have been commenced and determined against the debtor.
- Goddard Elliott could itself enforce judgment by way of a warrant, garnishee order and/or an order against their wages which would be served upon their employer, when such remedies can only be ordered by the court.
The ACCC is seeking declarations, injunctions, corrective advertising, the implementation of a trade practices law compliance program, and costs against Ms Sampson.
The matter has been listed for the hearing of an ACCC application for an interlocutory injunction in the Federal Court, Melbourne, at 9.30 a.m. on Wednesday 13 October 2010. The ACCC's interlocutory application seeks an order restraining the despatch of documents to the effect of the debt notices detailed in the ACCC's proceedings until the matter is determined or there is a further order of the court. A scheduling conference for the matter will be heard before Justice Gordon on 24 November at 9.30 a.m. at the Federal Court, Melbourne.