DEBT COLLECTING

Marlborough Express, Volume XLVII, Issue 144, 20 June 1913, Page 3

DEBT COLLECTING

ALLEGED IMPROPER DOCU-

4XI.Q J^

LAW SOCIETY TAKES ACTION

The use by a debt collector of a document having somewhat the appearance- of a legal instrument was the subject of a case brought by the Auckland Law Society in the Magistrate s Court this week, before Mr O. O. Kettle, S.M., against William Theodore Utting, carrying on business as the "Universal Mercantile Agency. Mr J. R. Reed, X.C appeared for the Law Society, and Mr J. F. Pullen for the defendant. Mr Reed explained that the action was brought under Section 1 of the Police Offences Act, which provided a penalty of not more than £10 against any person sending through' the post or otherwise -a document which was intended or likely to convey to any person ignorant of tho law that it was .a step or process in or preparatory to legal proceedings. Mr Pullen intimated' that the defendant admitted that he made use of the document produced, so that the case was merely one for argument. Mr Reed said that the document had been forwarded to a-Mrs J. McDonald. .. By defendant: On behalf of.Mr W. H. Woollams, chemist. »■ 'Mrs-McDonald, who claimed that, she had paid the money, was under j the impression that the document; had legal effect, and put it into the hands of her solicitor, Mr Birookfield, who handed it to the Law Society. The document produced was on foolscap j size paper, printed in red! and black, and was headed "Final Notice before Suit." It commenced, "District of Auckland, Dominion of New Zealand. Woolkms, W. H. (plaintiff) v. McDonald, J., Mrs (defendant). To above-named defendant: First, you will please take notice that the abovenamed plaintiff claims that you are | indebted to him in the sum," etc., and concluded with the statement, in formal terms, that unless the debtor remitted, or appeared at the office of the Universal Mercantile Agency before a certain hour on a certain: day, legal action would be taken. It was signed ' 'Universal Mercantile Agency" for the above plaintiff. Mr Pulleai explained that the defendant was a student of the American debt collecting organisation which sent out a number of model forms of notices. The document in question was one of thece, and was widely used in the United States and New Zealand. He was not allowed by Act to prove that the recipient was not deceived by it, but defendant would swear that he did not use it with any deceptive intent. Defendant ceased using the document three months ago, as soon as he knew that proceedings were being taken. Mr Reed: The Society has taken up this case, your Worship, as large numbers of such documents are being sent out to poor people, but very seldom come under tho notice- of the legal profession. Defendant was called, and stated that he took the document on trust, as it was supplied to him by one of the leading American mercantile agencies. Mr Kettle remarked that the document might be legal in the United States, but not in New Zealand. He would assume that tho defendant did not intend to deceive, but there.was no doubt that the document wa« of a sort against which the clauses of the Act was directed. Be had received a number of similar' documents which he had forwarded to the Justice Department. Ho would impose a moderate penalty of 20s and costs, but subsequent oases would be dealt with more severely