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.
When securing a loan, the last thing anyone would want is to have a default listed on their credit file. Debt or worse – bankruptcy can hinder you from securing a loan or line of credit. Mainstream lenders rely heavily on your credit file and if you have any of these listed against you, it can be an absolute nightmare. In such cases, is a credit repair even possible?
There are several things you can do to manage your default, improve your credit file or even repair it.
Check for discrepancies
Make sure you understand what is on your credit file. Understand what your current financial standing by dissecting your credit report. It is not uncommon for credit files to contain mistakes, and these can seriously affect your ability to secure a loan. Should you find any mistakes, do not hesitate to contact your credit reporting agency.
Contact your credit provider
Get in touch with your credit provider not only to clear mistakes on your report, but to negotiate paying off your debt so that it does not appear on your credit file.
You may have numerous debts with varying interest that are almost impossible to manage. The last thing you want to happen is to get defaulting payments for debts you can pay but cannot keep track of. Consider consolidating your debt into a single loan, making it a single payment for a low interest rate. Now, you only have 1 debt obligation, avoiding defaults and making debt management much easier.
In rare cases where a default is listed because of identity – theft scams, you can help protect your identity and resolve these issues by getting in touch with your credit provider. Some credit reporting agency have package options that notify you when certain events are recorded on your credit file, alerting you of any fraudulent activity.
Build good credit
In the long run, your financial goals should include building wealth, and not just to catch up with your repayments. In time, you will also build a good credit history which will improve your chances of securing a loan. Meet your monthly financial responsibilities by spending only on what you need, and take on debt that you are sure you can pay.