Debt management companies, long the bane of consumer groups and financial counsellors, face a new world of regulation as the new financial year starts.
Providers of debt management services must now hold an Australian credit licence and meet ongoing compliance obligations. As ACLs, they will have to become members of the Australian Financial Complaints Authority.
Under regulations made in April, debt management services include businesses offering credit repair and debt negotiation carried out in relation to a consumer credit contract and where a consumer is required to pay for the service.
Regulated debt management assistance activities include helping a consumer apply for a change to a credit contract, apply for postponement of enforc…
Read the full article at: https://www.bankingday.com/debt-management-sector-now-regulated
