The Consumer Action Law Centre has called for reforms to the credit repair industry to safeguard the interest of clients. Concerns for the industry have moved the Australian Securities and Investments Commission into the spotlight to regulate credit repair and eliminate rouge operators.
The report claims that credit repair companies are charging high fees and tend to complicate client issues instead of resolving them. Allowing ASIC to manage this industry will force credit repair companies to outline their duties publicly and publish fees, terms and other information on their website. ASIC can then appoint an Ombudsman to assist clients in lodging a formal complaint without having to go to court.
Read more about this on the Adviser website.