Following the launch of laws by Federal Treasury in relation to credit repair companies nationally, RLA welcomes the requirement for all those operating in this sector on a ‘for profit’ basis to be licenced, effective 30 June 2021.
Mark Thomas, CEO of Responsible Leasing Australia, believes many consumers facing financial hardship have been placed under undue pressure by rogue so-called ‘credit repair agencies’, worsening their financial position in the process.
‘These formerly unregulated bodies are now required to be licenced throughout Australia, a move which is well overdue,’ says Mark.
RLA welcomes this initiative by the Federal Government.
Many of these fly-by-night unscrupulous operations, often with little financial experience, would routinely provide consumers with poor advice and questionable tactics on managing their debt. In many cases, this led to consumers quickly sinking into even greater levels of financial hardship. After being advised to abscond from their current debt, then wipe public records of their bad debts, many consumers simply repeated the cycle. This situation was freighted with risk, for consumer leasing organisations and consumers alike.
The practices of consumer leasing organisations have also been frequently misrepresented by ‘credit repair’ companies. ‘These portrayals are unfair,’ Mark confirms. ‘All RLA Members have clear protocols and routinely work with customers facing financial hardship to enable them to freeze payments for an agreed period, enabling them sufficient time to pay their debts.’
Responsible Leasing Australia therefore applauds this essential Government initiative, which will compel the for profit ‘credit repair’ sector to become accountable and proceed responsibly. “We welcome this new legislation as an essential move forward, both for consumers and for our own industry,” says Mark.
ENDS.
To find out more about the new legislation, or learn more about Responsible Leasing Australia Ltd, contact CEO, Mark Thomas on 0447 850 385 or ceo@rlal.org.au
