Debt collector ARMA Group spent months harassing and intimidating 81-year-old Diane Walker into paying an insurance claim she was not responsible for.
ARMA, acting on behalf of insurance giant Suncorp, ended the experience with an apology to Ms Walker and financial compensation for the distress caused, but only after months of legal threats and pressure to pay.
"They were rather bullying-type letters … it's in the back of your mind all the time," Ms Walker said.
ARMA's website says its workflows are "AI-driven", boasting it takes the company "less than two minutes to set up a smart payment plan and no manual intervention is required".
Ms Walker's case is just the tip of the iceberg as the consumer watchdog takes ARMA Group and Force Legal, both owned by Credit Clear Limited, to court, alleging that between them they sent 320,000 debt enforcement notices to individuals that were allegedly misleading.
Legal experts are appalled and say it is a breach of Australian consumer laws.
"This is Robodebt 2.0 of the worst form," said Allan Fels, former chair of the Australian Competition and Consumer Commission (ACCC).
"I'm concerned … this seems to be the worst kind of illegal, deceptive conduct applied to bully, intimidate, frighten.
"It's traumatic for the individual to be confronted in a Robodebt situation with no opportunity to respond or fight back, or talk to someone, or explain their personal circumstances.
"There needs to be a serious, substantial crackdown on this kind of approach."
Just before Christmas, Ms Walker was involved in a two-vehicle car crash she was not responsible for, and that caused no damage.
The other driver's insurer, AAMI, a subsidiary of Suncorp, contacted Ms Walker looking to recover costs, despite having no evidence.
"I would have emailed them at least half a dozen times saying, 'Send me some photos, send me something that demonstrates that at least something happened,'" said Scott Walker, who stepped in as his mother's representative on the claim.
About two months after AAMI first contacted Ms Walker, it engaged its debt collector, ARMA Group, to recover the funds.
Without providing evidence, the debt collector concluded that Ms Walker was "liable".
Previously a freelance camera operator for the ABC, Mr Walker said he spent hundreds of hours trying to make sense of ARMA's communication.
"It was just this level of intimidation … the wording sounded very much like there's been some legal decision made, some type of independent, judicial system that has found an outcome," he said.
Ms Walker and her son said ARMA's letters were relentless.
Despite initially Ms Walker she had been found "liable" for the car accident, ARMA began threatening court action, suggesting culpability remained unresolved.
One letter said: "If you choose to dispute the issue with arguments that are not relevant — such as claiming there is no dashcam footage or no photos of the vehicles at the moment of impact — we will have no choice but to escalate the matter further.
"You are welcome to present those arguments in court if you believe they support your case. If you are found liable, you would be liable for court fees as well."
ARMA Group was initially claiming $1,175.51 from Ms Walker.
But after three months, the company increased the amount to $1,395.51 without explanation.
Mr Walker was then sent a separate claim, arguing he was now responsible for the accident, even though he wasn't there at the time.
"The system's not designed to have a sensible conversation with someone at the other end; it's a system that is designed to make you pay," Mr Walker said.
ARMA Group did not respond to questions from ABC News.
Suncorp did not provide an on the record response to the ABC's questions.
The number of Australians with debt is rising, with contact to the National Debt Help Line increasing by nearly 12 per cent in the year to August.
The chief executive of the Consumer Action Law Centre, Stephanie Tonkin, said Ms Walker's case represented a larger problem.
"Over many years, we've seen really poor conduct by debt collection companies and individual agents as well," she said.
"What Diane's case signals to me is that there is a problematic culture at ARMA that runs deep into the organisation.
"What these proceedings [against ARMA and Force Legal] by the ACCC show is that at the heart of the problem are the lawyers at ARMA," Ms Tonkin said.
She is concerned automation has been used with little or no oversight.
"I am really worried about the future of this industry, and the lack of consumer-centred design and the lack of safeguards that businesses are putting in to ensure that consumers aren't harmed."
After months of back and forth, Mr Walker contacted Suncorp executives, who in June dropped the claim due to a lack of evidence and admitted the company engaged its debt recovery partner "prematurely".
Suncorp apologised to Ms Walker and compensated her with a $1,500 goodwill fee.
It also told her that ARMA had acknowledged the matter was not handled appropriately.
In contrast, ARMA said it found Mr Walker's claims "unsubstantiated" and was "comfortable with how this matter was handled".
While Suncorp confirmed "formal disciplinary action" was taken with ARMA Group, it also said the relationship would continue "under our usual arrangements".
"I just find that extraordinary, and it's quite insulting," Mr Walker said.
Without her son's support, Ms Walker admitted the process would have looked different.