ASIC will launch a review into the debt management and credit repair sector, as part of its continued focus on protecting consumers, particularly those experiencing financial hardship.
ASIC Commissioner Alan Kirkland said: ‘We are concerned some licensees may be failing to engage in credit activities efficiently, honestly and fairly, leaving financially vulnerable consumers worse-off as a result.
ASIC’s surveillance will review how the sector, comprised of around 100 licensees, complies with the law. It will seek to understand the varying debt management and credit repair business models in operation.
ASIC will review instances where debt management firms may have failed consumers by not meeting the terms of their debt management…