ASIC warns consumers about using credit repair and debt advice services

How to understand credit reports and where to get the right advice.

Consumers must be beware of companies that say they can fix poor credit ratings, says the Australian Securities and Investment Commission (ASIC). Its campaign launched in early June seeks to help people understand that using such credit repair and debt management firms can mean they pay high fees and not get the solution they're seeking.

The initiative is being promoted via a multi-agency approach—with other Commonwealth, state, and territory agencies. And appears to have followed from an increase in complaints and its 2016 report that found that some debt management firms:

• Did not explain well enough the fees and costs associated.