Ombudsman denies broker request to name excluded credit repairers

by Adam Smith02 Mar 2015
The credit ombudsman has declined a broker's request to release the names of two credit repair agencies barred from using its services.

The Credit and Investments Ombudsman (CIO) - which was formerly known as COSL - last week announced it would be barring two credit repair agencies from using the ombudsman's services. CIO said the two companies were well-known, but declined to name them.

"In both cases, our decision was based on evidence that these third parties had pursued multiple complaints for an improper purpose within the meaning of our Guidelines," CIO said.

The Ombudsman said the unnamed credit repair companies had engaged in activities such as obstructing or delaying CIO's processes, making unreasonable decisions on behalf of consumers or otherwise acting contrary to consumers' best interests.

In an email obtained by Australian Broker, CIO declined a NSW broker's request to identify the two credit repair firms, so as not to unknowingly direct clients toward them.

CIO manager of client services Huong Nguyen told the broker there was "no obligation on us to provide this information".

"As credit repair agencies are not captured by licensing requirements where they are required to join an external dispute resolution scheme, we consider that naming particular agencies may cause consumers and the community to mistaken that we endorse other credit repair companies," Nguyen wrote.


  • by Chappo 2/03/2015 9:36:02 AM

    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!

  • by observer 2/03/2015 9:48:36 AM

    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.

  • by Vic Regional Broker 2/03/2015 10:18:51 AM

    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