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Brisbane-based Credit Reboot has developed and rolled out a software that allows consumers and small businesses to renegotiate their debts ahead of the deadline of their repayment holidays by the end of this month.
The software enables borrowers to write off 50% to 90% of their debt by identifying lending breaches by the credit providers. This would allow borrowers to "reset their debt position" before their repayment holidays end.
Around 900,000 consumers and small businesses had their repayments frozen at the peak of the economic uncertainties over the past year, said Laurence Barlow, CEO of Credit Reboot.
Barlow said the development of the software is a step towards helping these borrowers be in a good position when they start their payments again.
The software identifies breaches by conducting more than 180 checks on loan contracts and debt collection processes. The borrowers' credit scores are not affected as a result of the software making checks.
"If the credit provider is holding the consumer to full compliance of that contract — that is they must pay it all back plus interest plus fees and on a specific day — then it is fair and reasonable they are held to the same high compliance standards and if they breach those standards that is the basis of a negotiation," he said.
Barlow said this newly-developed solution will help borrowers, especially given the deadline for JobKeeper and JobSeeker support schemes.
“Treasurer Josh Frydenberg, just a few weeks ago, encouraged business owners and consumers to get on the front foot and negotiate with creditors,” he said.
