The Australian Securities and Investments Commission (ASIC) has announced a probe into credit repair and debt management services amid reports of dishonest practices.
The investigation aims to weed out those exploiting financially vulnerable consumers by not meeting debt management terms, charging high fees, or not communicating adequately with customers.
ASIC said it is concerned some licencees are engaging in these unfair practices that can leave these customers worse off.
There are around 100 organisations in the sector offering these services that will come under the regulator’s scrutiny.
ASIC commissioner Alan Kirkland said there have been multiple reports of these debt management firms not…