Fines of $67,000, $10,000, and $25,000 were issued respectively to Law Debt Collection Ltd, Law Debt Collection (NZ) Ltd, and Mr Campbell. In addition to the financial penalties, Law Debt Collection Ltd and Mr Campbell were ordered to pay a total of $13,500 in emotional harm reparations to three complainants who assisted with the Commission’s investigation.
The charges involved multiple instances where the companies made false claims during debt collection efforts. These included claiming they had the right to add collection fees or report defaults to credit agencies when they had no such authority. One charge also involved deducting payments meant for one client to satisfy another creditor’s claim. In a separate incident, Mr Campbell personally stated that a complainant who failed to comply with a court order would be placed on periodic detention, despite no such remedy being legally available.
The Commission also issued formal warnings to both companies for additional conduct that likely breached the Fair Trading Act. This related to communications sent to an individual who was told she was personally liable for a debt allegedly owed by an incorporated society. The individual was acting in her official capacity, and the Commission found the representation to be misleading.
While only a court can make a final determination, the Commission stated there was strong evidence to support its view that these representations were unlawful. The warnings now appear on the Commission’s public case register.
John Stuart Campbell is also listed as the director of several other related companies, including Law Legal Ltd, Law Commercial Ltd, Law Document Servers Ltd, Law Domestic Ltd, and Law Insolvency Ltd. These companies operate under similar branding and appear to provide various legal and debt recovery services.
The Commission encouraged all involved entities to review their compliance practices and ensure that future debt recovery efforts remain lawful and transparent.