Last week saw the beginning of ASIC proceedings against a notable company within the credit repair industry. The industry has been called into question due to a number of complaints by dissatisfied consumers. The below is referenced from MyCRA Lawyers and with permission by Mr Graham Doessel - link.

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ASIC v Malouf Group Enterprises Pty Ltd

In a brisk 17 minute appearance today (17 July 2017), Justice Derrington in the Brisbane Federal Court, heard the First Case Management Hearing between ASIC and the respondents Malouf Group Enterprises Pty Ltd and Jordan Francis Malouf.

Mr Malouf and his company Malouf Group Enterprises Pty Ltd ACN 115 371 581 (notably absent) are represented by McLaughlins Lawyers who sent a lone barrister to represent the respondents. ASIC sent a silk, Mr Sullivan QC and three others.

The respondents have until 31 July 2017 to file a response to the allegations made by ASIC. The matter will be back before Justice Derrington for another Case Management Hearing on 30 August 2017.

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Having worked in the credit repair industry personally, it seems to me this action is none too soon, bringing much needed protection to consumers and ensuring all consumers receive professional services and value for money. The industry does bring a great deal of value to consumers in removing blemishes which should never have appeared on their credit files and damaging their credit worthiness. However, there are concerns surrounding which credit issues credit advocates can and can not deal with on behalf of their clients.

In reference to the above-mentioned matter, in a recent phone interview, Mr Doessel said... 'this was always going to happen... the industry as a whole brings value and professional service and advice to consumers... there's no room for unconscionable conduct whatsoever... however, credit advocates must only act in a capacity allowable by law'. We could therefore see more actions form ASIC yet to come.

This brings attention to the 'elephant in the room' within the credit repair industry. Mr Doessel highlighted that '... There are certain services which must only be provided by a qualified lawyer'. Mr Doessel, owner and founder of MyCRA Lawyers stressed that credit advocates must not cross the line when it comes to matters such as judgements and court writs - matters which have appeared before court can only be reviewed and amended by lawyers.

Mr Doessel warns that there are consequences for any credit advocates conducting services outside of their realm. Only time will tell before ASIC takes action on this matter as well. Mr Doessel advises credit advocates to do their research to protect their own business interests and that of their clients and avoid possible persecution.

John J Maxwell, senior mortgage and finance consultant, Cocalex Consulting

If you have any questions or contributions relating to this article, please take the time to comment below and share your thoughts or opinions for the benefit of others reading this. No doubt this topic commands interaction, innovation and collaboration. The more answers that are delivered, the more questions that will arise. If you have any personal questions or queries, please feel free to contact me.

About the author:

John Maxwell is founder and Senior Finance & Business Strategist at Cocalex Consulting. John has over 17 years' experience in the financial services sector, and has owned and managed 9 mortgage franchises and has developed a background across the holistic financial services realm. He has particular focus and passion for: Leadership Training and Development, Franchise Development and Business Networking.