A PECULIAR CASE

New Zealand Times, Volume XXXVII, Issue 8457, 17 June 1913, Page 7

A PECULIAR CASE

DEBT COLLECTOR IN COURT ACTION BY LAW SOCIETY. Press Association. AUCKLAND, Juno 16. 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 iu tho Magistrate’s Court this morning, before Mr C. C. Kettle, S.M., against William Theodore Utting, carrying on business as tho “Universal Mercantile Agency.” Mr J. R. Reed, K.C., appeared for tho Law Society, and Mr J. F. Pullen for tbo defendant. Mr Reed explained that the action was brought under section 1 of the Police Ofteuces Act, which provided a penalty of not more than £IU against any person sending through the post or otherwise a document which was intended, or likely, to convoy to any person ignorant of the law that it was a step or process in or preparatory to legal proceedings. Mr Pullen intimated that the defendant admitted that ho 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. Woollama, chemist. Mrs McDonald, who claimed that she had paid the money, was under tho impression that tho document had legal effect, and put it into the hands of her solicitor, Mr Brookfield, who handed it to the Law Society. The document produced was on foolscap size paper, jarinted in red and black, and was headed “Final Notice before Suit.” It commenced "District of Auckland, Dominion of New Zealand. Woollams, W. H. (plaintiff) v. McDonald, J., Mrs (defendant). To above-named defendant. First, you will please take notice that tho abovenamed plaintiff claims that you are indebted to him in the sum,” etc., and concluded with the statement, in formal terms, that unless tue debt was remitted, or appeared at tho 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 Pullen 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 these, and was widely used in tho United States and New Zealand. Ho 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 tho document three months ago, as soon as ho know that proceedings were being taken.

Mr Reed: The society has taken up this case, your Worship, as large numbers of suoh documents are being sent out to poor people, but very seldom como under tho notice of the legal profession.

Defendant was called, and stated that he took the document pn 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. Ho would assume that the defendant did not intend to deceive, but there was no doubt that the document was of a sort against which the clause of the Act was directed. He 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 cases would be dealt with more severely.