The review is expected to have implications for the mortgage sector, as many borrowers who experience financial hardship may turn to debt management and credit repair services. Increased scrutiny and potential reforms could affect how mortgage brokers and lenders interact with clients who are seeking assistance with debt, as well as influence the advice and support provided to consumers navigating mortgage stress or arrears.
A licensing regime for debt management and credit repair firms was introduced in 2021 to protect consumers from harmful practices. Under this regime, businesses must hold a credit licence, comply with the National Consumer Credit Protection Act 2009, and be members of the…