When it comes to debt collection penalties in Australia, few cases are as jaw-dropping as the Excite Mobile saga. This company didn’t just bend the rules — they fabricated entire organisations to deceive consumers and then threatened to seize children’s toys. The Federal Court made them pay dearly for it.

Fake Agencies, Fake Threats, Real Consequences

Excite Mobile provided mobile phone services. When customers disputed their bills, the company did something extraordinary: they created a fake complaints handling organisation to trick people into believing an independent body had reviewed their dispute. It didn’t exist. It was completely fabricated.

Then they went further. They created a fake debt collection agency to chase those same customers. Customers thought they were dealing with a separate, independent collector — but it was Excite Mobile wearing a mask.

And the threats? They told customers that if they didn’t pay, a court would order them to pay a 20% surcharge — and that all their assets would be repossessed, including children’s toys. All lies. Every single claim was fabricated.

The Verdict: $555,000 and Directors Banned

The Federal Court found Excite Mobile guilty of misleading and deceptive conduct, unconscionable conduct, and coercion. The company was fined $555,000. Both directors were fined personally — $55,000 and $45,000 — and banned from managing a corporation for up to three years.

This wasn’t some rogue operator in a back alley. This was a registered company doing this to Australians all over the country — including Indigenous communities in Cape York and remote Queensland. The Australian Financial Complaints Authority (AFCA) exists to help resolve disputes, but cases like these show why legal enforcement matters.

They got caught. They got punished. And it can happen to any collector who breaks the rules. If a debt collector is threatening you with consequences that sound too extreme to be real — they probably are. You have every right to challenge them, and a law firm on your side changes everything.