Consumer Action has provided comment on Credit Ombudsman Service’s proposed guideline on credit repair.
We welcome this proposal, and recommend that the Credit Ombudsman:
- reword the proposed guideline to capture not only ‘paid representatives’ but any fee-for-service provider providing ‘representation, assistance or advice’ to ensure it captures all existing models of ‘credit repair’;
- consider how its staff can identify which applications are from consumers who have been assisted by a fee for service provider (this will be difficult where the provider is not actively ‘representing’ the applicant);
- collect and report data on the applications it receives from applicants who are represented, advised or assisted; and
- advocate for further regulation of credit repair and similar businesses, including to bring these businesses within the jurisdiction of External Dispute Resolution schemes.
A full copy of our submission is available by clicking: Consultation on proposed credit repair guideline.