ASIC Investigates Debt Management and Credit Repair Firms
ASIC Investigates Debt Management and Credit Repair Firms
0
The Australian Securities and Investments Commission (ASIC) has initiated an investigation into the debt management and credit repair industry, expressing concerns that certain firms may be exacerbating the financial struggles of vulnerable consumers.
The inquiry will focus on instances where firms are alleged to have overcharged for minimal services, failed in their contractual communication, or breached the terms of their agreements altogether.
ASIC Commissioner Alan Kirkland voiced apprehensions that some of the approximately 100 industry licensees might be participating in unfair or dishonest credit activities, ultimately worsening the financial situations of already vulnerable clients. Reports have surfaced of firms failing to honor commitments made to consumers, raising alarms within the commission.
During the probe, ASIC will review diverse business models within the industry to assess compliance with the law. The industry has been under heightened scrutiny since the implementation of a licensing regime in 2021, aiming to protect consumers from exploitative practices. Since these regulations were put in place, ASIC has already taken legal actions against several entities, including Bakken Holdings, for significant consumer harm.
Bakken Holdings, operator of Solve My Debt Now, was sued by ASIC in August 2023 after accusations of collecting $3.6 million from clients but remitting only $1.1 million to creditors, leaving many customer debts unpaid. Similarly, Chapter Two Holdings Pty Ltd received penalties for allegedly misleading advertising on their website about their debt management achievements.
The review's outcome, anticipated to be published as a public report next year, is expected to shed light on industry practices and offer insights for consumers seeking reliable debt management solutions. ASIC remains committed to taking enforcement actions if any unlawful activities are uncovered during the investigation.
The median price for a house in Sydney soared to $1,722,443 by the end of June, marking a 2.6% quarterly increase and a 4.2% rise year-on-year, according to Domain’s Q2 house price report. This marks the city's fastest quarterly growth in two years and the third consecutive rise. Alongside, unit prices hit a record $834,791, increasing by 1.5% over the same period. - read more
The Australian Securities and Investments Commission (ASIC) has initiated an investigation into the debt management and credit repair industry, expressing concerns that certain firms may be exacerbating the financial struggles of vulnerable consumers. The inquiry will focus on instances where firms are alleged to have overcharged for minimal services, failed in their contractual communication, or breached the terms of their agreements altogether. - read more
The Reserve Bank of Australia (RBA) has recently implemented two consecutive 25 basis point cuts to the official cash rate. This has culminated in a notable 34 basis point decrease in the weighted-average interest rate across all existing housing loans in the country compared to the peak rates observed in January 2025. - read more
The Reserve Bank of Australia (RBA) delivered an unexpected twist at its recent monetary policy meeting by deciding to keep the official cash rate (OCR) at 3.85%. This move contradicted the expectations of financial analysts, who were nearly unanimous in predicting a reduction in the rate. Market forecasts had virtually priced in a rate cut, highlighting the RBA's surprising break from anticipated action. - read more
BetaShares has announced the launch of Trellia Wealth Partners, a new entity formed through a strategic acquisition. The newly established firm will operate independently, boasting $8 billion in funds under management (FUM) and offering a range of investment options including index-based, active, and bespoke managed accounts. Additionally, Trellia Wealth Partners will provide advanced tools and technology aimed at enhancing efficiency and delivering superior client experiences for financial advisers. - read more
Mortgage stress is a common concern among homeowners worldwide, with the potential to cause significant financial and emotional strain. It often occurs when mortgage repayments consume a large portion of your income, leaving little room for other expenses and causing anxiety over financial security. The impact of not managing this stress can be far-reaching, affecting not only one's financial health but also overall wellbeing. - read more
Welcome to the exciting and sometimes complex world of real estate in Australia! If you are on the cusp of purchasing your first home, you've probably heard about stamp duty. But what exactly is it? Stamp duty is a form of tax imposed by Australian states and territories on property transactions. This tax is usually a percentage of the property purchase price or market value and is a legal requirement for most property sales. - read more
Welcome to this essential guide designed for Australian homebuyers who aspire to navigate the complex world of property financing. Due to the significant financial commitment involved in purchasing a home, understanding the nuances of mortgage calculations is imperative. Loan calculators are indispensable tools that offer valuable insights into the feasibility of a home loan, tailored to your personal economic circumstances. - read more
As mortgage interest rates continue to rise in Australia, it's becoming more important than ever for homeowners to take control of their finances. This article will provide valuable tips on mortgage refinance and debt consolidation for Aussie homeowners. With the potential for future rate increases by the Reserve Bank of Australia due to inflation concerns, many homeowners are feeling the financial burden. However, by exploring options like refinancing and consolidating debt, homeowners can regain control of their financial situation. - read more
Embarking on the journey to buy your first home is both an exciting and significant milestone in Australia. However, the process is also complex, and the learning curve can be steep for first-time home buyers. Being thoroughly informed is key to navigating the housing market's intricacies and can help elude the common missteps that befall many novices. - read more
Need Help Finding a Home Loan?
Get your free home loan eligibility assessment and compare offers tailored
specifically to your circumstances.
All finance quotes are provided free (via our secure server) and without
obligation. We respect your
privacy.
"Mastering Home Loans: Navigating the Australian Mortgage Market"
Asset Allocation: An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.
