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Ombudsman denies broker request to name excluded credit repairers

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Australian Broker | 02 Mar 2015, 08:34 AM Agree 0
The credit ombudsman has declined a broker's request to release the names of two credit repair agencies barred from using its services
  • Chappo | 02 Mar 2015, 09:36 AM Agree 0
    Typical beauracratic BS. We won't name the ones who we determine are operating inproperly, so that people think we endorse the others? Well if the other Credit Repair Agencies ARE members of CIO (formerly COSL) then I guess consumers can assume that you do. Enough of this BS!
  • observer | 02 Mar 2015, 09:48 AM Agree 0
    So what he is saying is that it is ok for the consumer to be disadvantaged by dealing with these firms, but as it isn't being done by the people under their jurisdiction (brokers etc) he isn't going to help.

    Basically they are brave enough to ban them but not to subject the decision to public scrutiny.
  • Vic Regional Broker | 02 Mar 2015, 10:18 AM Agree 0
    This is a plainly ridiculous stance, we as brokers frequently see people with credit problems, who want to get the matters resolved.
    How can we suggest a firm to go to if we have no knowledge as to who is reputable or not..
    Does the consumer who we are trying to assist have to call The Credit Ombudsman and ask if the people who they are considering using a member, I think not they are stressed enough.
    really the MFAA who have major interest in this needs to intervene here and show some muscle. THIS IS NOT protecting the consumer who is stressed enough already .

    Common sense needs to be considered here
  • Coast Broker | 02 Mar 2015, 10:21 AM Agree 0
    I think it is important that the CIO tell us the names of the Credit Repair Agencies so we can give them a wide berth as we as brokers receive a lot of emails from various Credit Repair Agencies telling us of their services.
  • Melbbroker | 02 Mar 2015, 10:54 AM Agree 0
    This says to me that the CIO doesn't want to take responsibility for monitoring these businesses but is happy to see consumers and brokers continue to deal with them at their peril.
  • Haydn Cooper | 02 Mar 2015, 01:22 PM Agree 0
    As one of the industry representatives, I sent an email (to which there has been no reply) to CIOL on 17 February for Raj Venga's attention asking for this same information.

    The failure to name them means they are still subjecting their 'members' to having to go through all the hoops when dealing with them. If these credit repair companies have engaged in misleading and deceptive activities, have they referred the matter to either ASIC (as I'm not sure credit repair is a financial product) or ACCC for action under the Australian Consumer Law? I would presume this is necessary to maintain their duty of care to its membership.

  • ACT broker | 02 Mar 2015, 01:27 PM Agree 0
    Ok so if CIO won't name the companies that they banned why not tell us which credit repair agencies are using CIO. This will give me more confidence in refering clients to those agencies.
  • Phil Johns | 02 Mar 2015, 01:35 PM Agree 0
    Since CIO (COSL) announced they were no longer accepting cases from two so called “credit repair” firms, the National Financial Services Federation has also made two requests of the Ombudsman to reveal the names of the entities involved. Our requests have been denied.

    It is inconceivable that a “member” based entity will not tell its own members who they have banned. This simply allows these entities to continue with impunity with the past practices of ‘black mail’ threats to credit providers into removing valid defaults or we will send you to CIO.

    This is a bad decision by CIO, who are more worried about other unregulated / unlicensed “credit repair firms” and not the consumers and licensed credit providers who are being ripped off by these firms.

    Maybe the regulators should be focused on unregulated entities like credit repair firms, causing vast detriment with these practices, than Australian Credit License holders working hard to do the right thing.
  • CharlieX | 03 Mar 2015, 12:24 AM Agree 0
    come to think of it, external dispute resolution scheme is really just a joke, a waste of time in dispute solution because its decision does not bid both parties, and may eventually get up to the courts for the final decision to bid both parties. it is a model base on or similar to the essential services model (water, gas, electricity) where it is supposed to protect the consumers. what is the rationale that this entity is going to help protect the consumers, as the entity is paid for by brokers/financial industry players? would you trust your lawyer to work for your best interest if your lawyer is being paid for by the party that you are in a lawsuit with?

    at the end of the day, it's not helping those it is meant to help and it's a cost of doing business for those who paid for it. we all know that the last one in the food chain is the consumer, the one that has to pay for all in some way and some how in disguise.
  • Merrilyn Mansfield | 03 Mar 2015, 07:02 AM Agree 0
    I guess the Ombudsman may have to be careful about defamation. Clients that come to Princeville Credit Advocates (our credit repair company) may have been the victim of credit repair operators that are less than ethical but we do not think it is our place to expose these operators because it is not a great look (sounds like sour grapes) and also may leave us open to a defamation case.

    Consumers are disadvantaged by dealing with some credit repair companies so it is a good move to reduce their ability to negatively impact consumers and companies. Yes, it may even be brave.

    However, this also means that there are a number of credit repair companies that are doing a good job for consumers and companies. Princeville Credit Advocates is one of them.

    I think as brokers, what you can do is ask the credit repair company you work with to tell you if they are banned before you refer your client to them. Get it in writing if necessary.

    I don't think the Ombudsman will tell consumers who are the banned credit repair companies, if they won't tell their members (brokers). You will have to make your own enquiries about that to make a good decision for your client. 1300 93 63 63

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