Pressured into bankruptcy by debt ‘experts’? Not on ASIC’s watch!
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Some Australians trying to escape debt have found themselves pushed into even deeper financial despair.
One woman said she was told to declare bankruptcy without explanation.
Another man nearly lost his car after his debt manager ignored default notices.
Now, the country’s corporate watchdog is stepping in.
The Australian Securities and Investments Commission (ASIC) announced it would review the debt management and credit repair sector, following a flood of disturbing reports from consumers in financial distress.
ASIC Commissioner Alan Kirkland said people were being let down by services they trusted to help.
‘In one instance, we heard that a woman could not get an answer on why her debt management firm was not making any payments to her creditors,’ he said.
‘After numerous calls to the firm, she was told to enter into bankruptcy with no further explanation.’
Another man said his vehicle was nearly repossessed because his debt management firm failed to act on urgent creditor notices.
When he tried to cancel the agreement and ask for a partial refund, the firm refused, citing a no-refund policy.
ASIC has been regulating the industry under a licensing scheme since 2021, but recent complaints suggest some operators are flouting the rules.
‘Some Australians have been left in the lurch by unscrupulous debt managers,’ Kirkland said.
The regulator’s probe will assess whether these companies are complying with their legal obligations.
Findings from the investigation are expected to be released next year.
Stories like these aren’t isolated—many people seeking financial help are being misled by services they thought they could trust.
In some cases, the damage goes beyond poor advice and enters the realm of outright deception.
One woman found herself thousands of dollars in debt after falling victim to what she described as an ‘elaborate scam’.
Read more: Woman fights for her rights after 'elaborate scam' pushed her to debt: 'What's going on here?'
When financial lifelines turn into traps, who can you really trust to help you out?
One woman said she was told to declare bankruptcy without explanation.
Another man nearly lost his car after his debt manager ignored default notices.
Now, the country’s corporate watchdog is stepping in.
The Australian Securities and Investments Commission (ASIC) announced it would review the debt management and credit repair sector, following a flood of disturbing reports from consumers in financial distress.
ASIC Commissioner Alan Kirkland said people were being let down by services they trusted to help.
ASIC investigates dodgy debt relief services. Image source: Pexels/Kampus Production
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
‘In one instance, we heard that a woman could not get an answer on why her debt management firm was not making any payments to her creditors,’ he said.
‘After numerous calls to the firm, she was told to enter into bankruptcy with no further explanation.’
Another man said his vehicle was nearly repossessed because his debt management firm failed to act on urgent creditor notices.
When he tried to cancel the agreement and ask for a partial refund, the firm refused, citing a no-refund policy.
ASIC has been regulating the industry under a licensing scheme since 2021, but recent complaints suggest some operators are flouting the rules.
‘Some Australians have been left in the lurch by unscrupulous debt managers,’ Kirkland said.
The regulator’s probe will assess whether these companies are complying with their legal obligations.
Findings from the investigation are expected to be released next year.
Stories like these aren’t isolated—many people seeking financial help are being misled by services they thought they could trust.
In some cases, the damage goes beyond poor advice and enters the realm of outright deception.
One woman found herself thousands of dollars in debt after falling victim to what she described as an ‘elaborate scam’.
Read more: Woman fights for her rights after 'elaborate scam' pushed her to debt: 'What's going on here?'
When financial lifelines turn into traps, who can you really trust to help you out?
