These firms offer to assist customers struggling to pay their debts by providing a range of services including bankruptcy advice, informal debt agreements, debt consolidation and formal debt agreements.
Following ASIC raising concerns:
Although debt agreements and debt administrators are regulated, this does not mean they are ‘approved’ by the government.
ASIC Deputy Chair Peter Kell said, ‘Recommendations and statements, like ‘Government Approved’ can have a strong influence when vulnerable consumers in financial hardship are seeking help with their debts.’
‘Firms must ensure their marketing materials and promotional statements are based on fact.’