Taking action against a credit repair company
There are easy options for seeking a refund or compensation from a credit repair company.
Many Victorians have experienced problems with credit repair companies. If you are one of these people, and you are looking to seek a refund or other compensation, consider the following steps.
Step 1: Complain to the credit repair company
Try picking up the phone and raising your concerns directly with the credit repair company. If that does not work, put your concerns in writing.
Sample letter to a credit repair agency
Click here for a sample letter that can be used as a guide to raise your concerns about a credit repair company. (Microsoft Word Document) You will need to rewrite the letter so that it reflects your situation.
If you have any difficulty putting your complaint in writing, don’t give up! If you are in Victorian, contact Consumer Action Law Centre for help.
Step 2: Apply to a free Ombudsman Scheme (if the credit repair company is a member)
Ombudsman schemes help have the power to investigate and make a decision which is binding on a business.
However, not all credit repair companies are members of a free Ombudsman Scheme. You can check to see if the credit repair company you have a dispute with is a member of an Ombudsman scheme, and make a complaint, by contacting the Financial Ombudsman Service and the Credit and Investments Ombudsman Service.
Step 3: Apply to the Victorian Civil and Administrative Tribunal (VCAT)
If cannot resolve your dispute through a free Ombudsman Scheme, you can consider lodging a claim in VCAT. For more information about making a claim in VCAT, see Consumer Action Law Centre’s factsheet Dispute Resolution: Consumer Disputes in VCAT.
Contact the Consumer Action Law Centre for further information if you are unsure about how to make a claim in VCAT.
Step 4: Complain to a government regulator
It is important to let the government agencies that police credit repair companies know if you think a business is acting unfairly. Try making a complaint to the ACCC, ASIC and Consumer Affairs Victoria. These bodies will not necessarily take action to help you personally. However, they play an important role in enforcing the law so that all Australians are protected.
Warning: This advice is for information only and should not be relied upon as legal advice. This information applies only in Victoria, Australia and was updated on 31 December 2015.
