Cash Return Mercantile Pty Ltd (Cash Return) and a former agent, Ms Sharon McCaskey, had engaged in undue harassment of debtors, the Australian Competition and Consumer Commission has alleged in Federal Court proceedings instituted in Perth.

The ACCC has alleged that Cash Return, a debt collection agency, and Ms McCaskey, breached the Trade Practices Act 1974 in their dealings with a number of consumers.

It has alleged that Ms McCaskey and Cash Return engaged in undue harassment of a number of consumers in relation to the payment for goods and services supplied by clients of Cash Return. The ACCC has alleged the conduct involved threatening, aggressive and frequent telephone contacts with consumers. The ACCC has also alleged that Ms McCaskey and Cash Return made a number of false representations during their telephone contacts with consumer.

Section 60 of the Act prohibits the use of physical force, undue harassment or coercion by a corporation (or its servants or agents) in relation to the payment by a consumer for goods or services.

A direction hearing has been set down for 9 a.m. on 27 October 1999 in the Federal Court, Perth.