Former Australian Competition and Consumer Commission chair Allan Fels has likened debt collection tactics targeting an 81-year-old woman to "Robodebt 2.0", as the consumer watchdog takes the firm to court over hundreds of thousands of notices.

Suncorp debt collector ARMA Group pursued Diane Walker for months over an insurance claim she was not responsible for, before ending the ordeal with an apology and financial compensation, according to ABC News reporting on Wednesday.