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COSL blasts credit repair companies

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Australian Broker | 21 Aug 2014, 08:05 AM Agree 0
The Credit Ombudsman has delivered harsh words to credit repair companies 'behaving badly'
  • QEDRisk | 21 Aug 2014, 09:27 AM Agree 0
    Where is the bad behaviour? I mean, I'm sure it exists but not in this article.

    Consumers often are clueless about what they can do if they have dodgy defaults on their record. These businesses provide a service to help those consumers and they have a right to charge for that service. Trying to link the amount of the default to the price of the service is ludicrous.
  • marty | 21 Aug 2014, 09:49 AM Agree 0
    Agree Greg. The system is rigged in favour of the credit providers and what is wrong with outsourcing the process to a company who deals with this stuff day in day out. I know I would gladly pay $1900 to have a $500 default removed if it meant the difference between not being able to secure a home loan or not. Sorry Raj is off the mark here.
  • not so old broker | 21 Aug 2014, 09:52 AM Agree 0
    hard to see where QED is coming from. I'm sure s/he would not want to pay $1900 for a defaulted amount of $500! Where's the logic - or the justice? Try being a small business that's owed $500 and is bullied by these so-called service providers.
  • Coast Broker | 21 Aug 2014, 11:03 AM Agree 0
    People are time poor and Telco companies are the worst for not following correct procedures when it comes to default listing especially when you have their Customer Service companies off shore. If people are prepared to pay for the service because they are time poor. However I am sure there are some Credit Repair companies that may not be acting I a professional manner like wanting all their fee up front.
  • Raj Venga | 21 Aug 2014, 03:46 PM Agree 0
    QEDRisk: The article doesn't cite the bad behaviour referred to, but this does: http://email.cosl.com.au/t/ViewEmail/y/A1AF6FDBDBEDA9D1
  • rachelthecreditlady | 21 Aug 2014, 09:02 PM Agree 0
    Not all credit repair companies behave frivolously for the most Part a credit repair company does a better job a faster job than services provided by company free of charge. The fact that you dont want to deal with credit repair companies is your lost. You pay 40.00 for an oil change, when simply you can perform that service for free? Consumers . Are aware of fees before they pay, also aware of the outcome.
  • Matthew | 22 Aug 2014, 08:26 AM Agree 0
    You guys didnt understand the article states you are paying creidt repair companies 900 to call cosl and remove your default.

    why not save 900 call cosl yourself. you are right that is a manipulation of peoples understanding by not telling them they can do it themself
  • QEDRisk | 22 Aug 2014, 09:52 AM Agree 0
    Thanks Raj for pointing us to COSL's revised guideline proposal, which no doubt was the point of the article yesterday. I agree that most of the behaviours alluded to in the proposed guideline are reasons to avoid a "credit fix" company.

    However, I do still object to the assertion that a provider is doing the wrong thing by providing a service just because the consumer could have done it themself for free. Rachel's analogy is perfect - I can change my oil in my car for free. I really can. But I really don't have the time anymore, so I pay someone else to do it. They deserve to be paid for doing this for me. Not only that, they do it all the time and are less likely to overtighten or undertighten my sump plug, like I might do because I'm not an expert in that area.

    The linkage of the cost of this service to the amount of the default is irrelevant. As Marty says, if paying $1900 to fix a $500 default means my home loan gets approved, I might think that's money well spent.

    We supposedly live in a free economy. If there is supply of and demand for a service, then the market will work out what is the right price to pay for that service.

    I will provide QED Risk Services' comment to your proposed guideline by the deadline.

    Cheers
  • Ed Ridge | 22 Aug 2014, 10:38 AM Agree 0
    If any of you have ever dealt with COSL or FOS you will understand why consumers would rather pay than loose so much time with these organisations. At best all they do is pass emails back and forth waiting for an outcome. After 9 months and their hand is forced they may make a suggestion to the member that they sort something out. The process with these organisations is geared towards their members and not a speedy resolution for the customer. I have dealt with both and charged the offending lender each time for my costs and was paid.
  • marty | 22 Aug 2014, 11:19 AM Agree 0
    @ Raj - I get there are shonks in this credit repair industry and you are trying to protect consumers but a consumer deserves the right to be represented by a company who aggressively pursues a positive outcome for them. The old saying applies here "A man who is his own lawyer has a fool for a client". Put some guidelines in place sure but don't get the poops because people chose representation over dealing with you guys direct.
  • Neil | 28 Aug 2014, 12:46 AM Agree 0
    Raj...You provide a good service for those that want it. So does Legal Aid but we all know that a QC usually gets better results.
    If people don't know what their entitlements are under the Financial Services Act, then they don't know what to complain about until a professional (one who is paid to proffer advice and guidance) helps them. COSL and all of the Ombudsman services will and can ONLY adjudicate on the complaint put to them. They are not an advisory service. A reputable credit repair service WILL tell the client that the Ombudsman is available to them as a free service and then explain the benefits of using a representative who knows what they are entitled to. you are allowed to represent yourself in a court of law...free...but even the judge when honest will tell you that you are a fool to do so. Raj, be honest...what you are suggesting could mean that less consumers get the result they are entitled to ...yes for free
  • not so old broker | 28 Aug 2014, 10:11 AM Agree 0
    seems that everyone is arguing purely form their own interests. Let's put this to bed.
  • Merri | 28 Aug 2014, 06:55 PM Agree 0
    If correctly listed defaults are removed from credit files the blame lies squarely at the feet of the credit provider who is the only entity aside from a credit reporting agency (Veda, Dun & Bradstreet or Experian) that has the power to remove them. Credit repair companies can only make a case to remove a listing - they can't access the system and hit delete. COSL is concerned because of their fee structure that some credit providers are removing correct listings. This is a matter they need to take up with their membership instead of blaming the credit repair industry and using it as a scapegoat.
  • Danial | 25 Oct 2014, 07:00 PM Agree 0
    Firstly, COSL is a company that is required to be profitable to continue to provide a service (Raj must report to shareholders). COSL NEEDS not to forget that they are not ASIC, they are an organization making a profit to shareholders... It is my understanding that majority of the board members of COSL either have shares or had shares in collection agencies or even had sat on boards for collection agencies or financial institutions.. I can now see who is playing double standards. COSL IS NOW BECOMING A RIGHT WING organization that is leaning towards creditors side. I as a consumer should have a right to pay for professional service if I wanted to... Has COSL had a look at its practices lately???
  • timespent | 07 Nov 2014, 12:02 PM Agree 0
    The bad behaviour exists with the tactics employed by these so called Credit Repairers... They charge on average $900 PER listing removed... Most take some form of high payment prior to any removal taking place... And yes people are paying these ridiculous fees for listings under $500... And they are not being advised that the Ombudsman or other entities including the Credit Provider can conduct the same investigation for free nor are they told if there is no error the listing cannot be removed... And the ultimate slap in the face for consumers is that if they can't pay the exorbitant fees imposed by these Repairers the Repairer in turn will refer you back to VEDA!! These places need to be regulated as soon as possible.
  • Ed Ridge | 07 Nov 2014, 12:39 PM Agree 0
    timespent I agree with you however have you ever attempted to get COSL to deal with one of those listings in a reasonable time frame. Most of these issue's come up when the client has gone for finance and they want it dealt with quickly, if you want that then don't go to COSL minimum time frame for anything to get moving is at least 120 days and that's just to get it moving double it to get anywhere near a solution.

    Raj needs to concentrate more on how this situation has come about (bad listings by the likes of VEDA etc) and less on how it's effecting COSL directly. Go to the source of the problem.
  • timespent | 07 Nov 2014, 01:47 PM Agree 0
    Yes, however Ed Ridge, Credit Repairers will hold on to these cases for even longer periods of time - up to 12 months or more, trying to extract the listing through any means possible... Refusing to deal with the factual evidences provided regarding correct listings and the subsequent outcome - which is non removal. This is far more detrimental to the consumer... And in fact holds consumers almost to ransom, as ultimately, if no error is found, their Credit Report will remain unchanged, and the consumer, during this extended timeframe has been tied up in a contract that will ultimately leave them in the same position.
  • Neil Baker | 08 Nov 2014, 12:10 PM Agree 0
    timespent...I would love to see the Credit Repair business in Australia regulated. We also provide credit repair services in the UK and since regulation, we are the ONLY qualified, registered and accredited consumer credit repair business in the UK...the rip-off merchants were closed. If we had legislation passed in Australia to set minimum standards and ensure there are no conflicts of interest ( eg being owned by a non-conforming finance provider as some of our opposition in Australia are), then we would see are far better level of service. A few facts for you...1. The vast majority of finance defaults are removed by us without having to go to the Ombudsman.2. We have cleared hundreds of defaults for clients who first went to COSL and the listing company first.3. I always tell clients that they can use the various ombudsman services available but most haven't the time or the knowledge of how to best present their case...do you change your own spark plugs, oil and filters on your car?...why not because it is easy enough...I don't either by the way because time and a professional job are both valued by me.4. Our fees are insignificant to the cost of waiting up to 5 years to be able to get a loan or generally conduct your life's business because of a default that was issued without you first being afforded all your rights...e.g. being transferred to the hardship department rather than the Collection ( people with baseball bats) department...5. I have without charge referred many people who originally wanted to pay for our services, to either the IDR or the relevant Ombudsman when the case is so simple that they don't need our help and are more than capable of getting it off themselves...and they did...happy to discuss this issue with you or anyone who really cares...You can find me at Princeville Credit Advocates...my name is Neil Baker and I don't hide behind aliases.
  • timespent | 10 Nov 2014, 02:11 PM Agree 0
    NEIL BAKER spoken like a true Credit Repairer...once regulated perhaps we will have something to take about. .
    Clearly I have hit a nerve
  • timespent | 10 Nov 2014, 02:55 PM Agree 0
    Also Neil, if your company is above the normal disrepute of credit repairer tactics why oh why would you attack and behave as if the comments were issued directly at you? And I can change my own spark plugs and paying someone else to service my car for me affects my mode of transport for part of one day ...not for months or more whilst trying to dodge the reality of correctly applied listings...as the majority of defaults investigated are legitiment however this is often ignored by some...Enjoy!
  • Neil Baker | 10 Nov 2014, 02:58 PM Agree 0
    timespent...Thank you for recognising us as "True Credit Repairers"...when we get rid of the less than true and untrustworthy, everyone will be better off...Hit a nerve?...you bet!...I am passionate about what we do to help people and hate the misleading conduct of many in our business.
  • timespent | 10 Nov 2014, 03:31 PM Agree 0
    Then one would assume my comments would not need apply to you, if you are above board, but only to those you are also pointing the finger at?..hence one would assume you would support my comments rather than attack them...however you continue with the banter
  • Neil Baker | 10 Nov 2014, 06:10 PM Agree 0
    timespent...I do not enjoy seeing people make sweeping generalisations about the business we are proudly in. Your credibility can be questioned when your logic and foundations for points made are often in "absolutes"...as this is a written forum and not spoken, you best ensure you get your comments accurate...to answer your question...I do agree that regulation is needed...bring it on
  • timespent | 12 Nov 2014, 11:35 AM Agree 0
    Unfortunately it's not a 'sweeping generalization'... listings cannot be removed unless there is an absolute error.
  • timespent | 12 Nov 2014, 11:36 AM Agree 0
    The only questionable credibility is that of the 'credit repairer', the sooner all companies are regulated the better.
  • Anti Cosl credit repairer | 20 Nov 2014, 10:07 PM Agree 0
    Raj Venga is not above the law. COSL service is not free and he is happily enticing members to join his "clan" and do nothing but delay the complaint process whilst collect fees from members.

    COSL won't last long before ASIC realises they need to shut them down.
  • marty | 21 Nov 2014, 09:08 AM Agree 0
    @ Anti Cosl credit repairer...."COSL won't last long before ASIC realises they need to shut them down".

    ASIC doesn't have much of a track record in shutting down any thing bigger than a small mortgage brokerage. Unlikely.
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