Napthine Government says it will shake up debt collection industry if re-elected
FEARED debt collector Mick Gatto may have to find a new job, with the State Government moving to introduce tough new laws to regulate the industry if re-elected next month.
Under the changes, set to be announced today, repossession agents will need to be licensed following a decision by the former Labor government to relax the laws.
The decision made Victoria the only state where debt collectors could work without regulation.
Industry sources say the trade has become riddled with criminals since licensing regulations were relaxed.
And police and operators have lobbied the Government to re-regulate the sector since the changes were introduced. Last month Victoria Police also told the Royal Commission into corruption in trade unions that bikies had bashed and threatened people to recover debts for union officials in the past 12 months.
If re-elected debt collectors such as Mr Gatto — who has been banned from Crown casino and Victorian racecourses — will be required to pass a “fit and proper person” test to gain a licence.
The new laws will also prohibit anyone who is subject to a control order, such as outlaw motorcycle gangs, from becoming debt collectors.
Businesses and individuals engaging in debt collection will also need to register with Victoria Police and will be listed on a publicly accessible register.
The fit and proper person test will also ensure offenders convicted of serious criminal offences do not become debt collectors.
Mr Gatto, whose criminal record includes illegal gambling, deception, assaulting police, reckless conduct endangering life and burglary, has become one of Melbourne’s most prominent debt recovers.
His company Gatto Corporate Solutions claims to offer “professional business solutions” specialising in collecting money and mediations.
Today’s move is the second crackdown the State Government has made against Mr Gatto, after he was stripped of his boxing promoter’s
licence last year.
