Deregistration of Sam Pos Pty Ltd trading as DebtCutter

AFSA received a tip-off highlighting allegations of financial mismanagement within the company. An inspection by AFSA identified issues with record management and risk controls.

This resulted in a decision by the Inspector-General in Bankruptcy to deregister the company on the grounds that it did not meet its obligations under the Bankruptcy Act or the fit and proper person requirements. For further information please refer to our public statements.

Following the deregistration, existing agreements that were administered by Sam Pos (trading as DebtCutter) were transferred to the Official Trustee, which sits within AFSA.

This means all debt agreements are now being administered by the Official Trustee. Debtors and creditors have been contacted by AFSA to inform them of the transfer of debt agreements.

Yes, AFSA (via the Official Trustee) will continue to manage all debt agreements transferred from Sam Pos.

No. AFSA has contacted your creditors to explain the circumstances around the transfer.

We appreciate that this is a difficult and uncertain time for affected people and wish to assure you that resolution of this matter remains a top priority for AFSA.

Following the deregistration AFSA has:

• Taken over the administration of all debt agreements and undertaken a comprehensive review of impacted administrations.
• Launched an investigation, including seeking a return of the allegedly misappropriated (taken) funds.
• Worked to identify options for the best way forward to support debtors and creditors.
• Assigned a dedicated case manager to manage debtor and creditor enquiries associated with each individual debt agreement.

The Official Trustee (part of AFSA) is currently considering a decision (guidance) received from the Federal Court on Monday 25 November 2024 to identify the best way to progress debt agreements.

We will provide further information following consideration of the Federal Court’s decision and as next steps are determined.

This decision is an important step towards a resolution but may not be the final step.

Updates will be provided on this web page as the matter progresses.

Under the law, a Notice of Completion can only be provided once both the debtor has met their obligations and creditors have been paid.

The missing $1.1 million misappropriated (taken) by Sam Pos means there is a shortfall in the pool of money available to pay creditors what they are due.

The Official Trustee sought guidance from the Federal Court to address this. The Official Trustee received the guidance on Monday 25 November 2024 and is considering its implications.

We appreciate this is a difficult and uncertain time and assure you resolving this matter is a high priority.

If you require further information please contact your AFSA case manager. If you are unsure who your case manager is or how to contact them, please email OTDAtransfers@afsa.gov.au or call 1300 364 785.

No. Debtors who have met their obligations (completed their payments) will not be asked by AFSA to pay more to cover the $1.1 million taken by Sam Pos.

Your obligations as a debtor are set out in your debt agreement. It is important that you continue to make payments as per your agreement. If you have any concerns or questions about your payments, please contact your AFSA case manager. If you are unsure who your case manager is or how to contact them please email OTDAtransfers@afsa.gov.au or call 1300 364 785.

This matter has raised several complex legal issues for which the Official Trustee is seeking guidance from the Federal Court. One of those matters involves the issue of Notices of Completion. Please see FAQ I’ve paid off my debt agreement. Why can’t I get my Notice of Completion?

Not issuing Notices of Completion has an impact on the National Personal Insolvency Index (NPII) and credit reporting.

The Official Trustee (part of AFSA) is currently considering a decision (guidance) received from the Federal Court on Monday 25 November 2024. We will provide information on NPII and credit reporting following consideration of the Federal Court’s decision and as next steps are determined.

If you require further information please contact your AFSA case manager. If you are unsure of who your case manager is or how to contact them please email OTDAtransfers@afsa.gov.au or call 1300 364 785.

The Official Trustee is currently considering a decision (guidance) received from the Federal Court on Monday 25 November 2024 to identify the best way to progress debt agreements for the benefit of both debtors and creditors.

We will provide further information on dividend payments following consideration of the Federal Court decision and as next steps are determined.

We appreciate that this is a difficult and uncertain time and thank you for your ongoing patience.

If you require further information please contact your AFSA case manager. If you are unsure of who your case manager is or how to contact them please email OTDAtransfers@afsa.gov.au or call 1300 364 785.

The misappropriation (taking) of over $1.1 million of money paid by debtors under their debt agreements means there is a shortfall in the pool of money available to pay creditors what they are due.

This has affected debt agreements because creditors have not been paid all the dividends (money owed) as per the agreements.

To resolve the issue, the Official Trustee (part of AFSA) has sought direction (guidance) from the Federal Court. The guidance is essential to help identify the fairest way to resolve this matter for both debtors and creditors.

The purpose of the hearing in April 2024 was to seek judicial advice (guidance) to help inform the fairest way forward for both debtors and creditors following the misappropriation (taking) by Sam Pos of over $1.1 million paid by debtors under their debt agreements. 

On Monday 25 November 2024 the Federal Court delivered its decision.

The Official Trustee is currently considering the decision and its impacts on the debt agreements. We will provide further information following consideration of the Federal Court’s decision and as next steps are determined.

The decision is available for download from the Federal Court website.

This decision is an important step to help identify the fairest way to resolve the matter to the benefit of both debtors and creditors but may not be the final step.

There are several other complex legal questions, as well as issues arising from inadequate and incorrect recordkeeping by Sam Pos and the misappropriated (taken) funds, that the Official Trustee is seeking guidance on.

We appreciate this is a difficult and uncertain time. Resolving this matter remains a priority and we will continue to keep you updated.

This is a complex and challenging matter that has required extensive legal, investigative and forensic accounting work to:

• identify how much money was misappropriated (taken)
• explore ways to try to recover the misappropriated (taken) money
• map inconsistencies in data resulting from inadequate and incorrect recordkeeping by Sam Pos
• identify the best way forward for the benefit of both debtors and creditors.

Significant progress has been made but there are still complex legal questions that need resolving. In parallel with the Federal Court proceedings, we are continuing to progress other work to help resolve this matter in a way that is fairest for everyone involved.

Updates will be provided on this web page as the matter progresses.

We appreciate that this is a difficult and uncertain time and thank you for your ongoing patience. If you require further information, please contact your AFSA case manager. If you are unsure of who your case manager is or how to contact them, please email OTDAtransfers@afsa.gov.au or call 1300 364 785.

Please contact your case manager. If you are uncertain who your case manager is, call 1300 364 785 or email OTDAtransfers@afsa.gov.au.

Please also see the Further Information section below where there are links to relevant support services, should you wish to seek any additional advice.