One among Australia’s monetary watchdogs is cracking down on dodgy debt managers following a string of incidents focusing on weak clients, together with one lady who was advised to declare chapter for no motive.
The Australian Securities and Investments Fee (ASIC) introduced at this time it’s launching a assessment of the debt administration and credit score restore sector to higher defend shoppers experiencing monetary hardships.
It stated it had acquired plenty of “disturbing” tales of unlawful and unfair practices from licensed professionals.
“In a single occasion, we heard {that a} lady couldn’t get a solution on why her debt administration agency was not making any funds to her collectors,” ASIC Commissioner Alan Kirkland stated.
“After quite a few calls to the agency, she was advised to enter into chapter 11 with no additional rationalization.
“One other man was prone to having his automobile repossessed after his debt administration agency failed to answer default notices from collectors.
“When he cancelled his contract and requested for a partial refund from the debt administration agency, they stated there was a no-refund coverage.”
ASIC’s investigation will assessment how properly debt managers are following the regulation, following the introduction of a licensing scheme in 2021.
It can publish its findings subsequent yr.
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