Demolition Debt

Hi Scott

My husband and I run a demolition business with seven full-time employees. Unfortunately, one of them got into financial difficulty and some sharks called Panthera Finance bought his debt. They now have a garnishee order on his wages and harass me (as office manager) to pay the instalments — or they ‘reserve the right’ to order me to pay the entire $25,000. The employee has had a rough trot the last few years, and I have taken less per week from his pay than they are asking for, to keep them at bay without pushing him to breaking point. Is there any advice you can give me regarding garnishee orders or this delightful Panthera Finance crew?

Jane

Hi Jane,

Tell them to bugger off with their bully-boy tactics.

There is no way they can “reserve their right” to order you to “pay the entire $25,000”.

That is total bollocks!

Now, you are required to pay the amount set by the court. However, each state sets limits on how much a debtor can take from someone’s salary, which is known as the ‘protected earnings rate’. In Victoria it’s 20% after taxes.

Why?

Because, while people need to repay their debts, they also need to eat.

Panthera Finance has a reputation of being super-aggressive: in March this year the Federal Court whacked them with a $500,000 fine for undue harassment.

And if they’re getting under your skin, can you imagine what sort of pressure they’re putting on your employee?

The bottom line is this: it’s time to hit them with a wrecking ball. Make a complaint to the Australian Financial Complaints Authority (ACFA) on 1800 931 678. And I suggest your employee call the National Debt Helpline on 1800 007 007 so he has a professional in his corner to help sort out his mess.

Scott