Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

Investors warned on dodgy debt firms

By Reporter · May 05 2017
Reading:
egg
egg
egg

Invest

Investors warned on dodgy debt firms

By Reporter
May 05 2017
Reading:
egg
egg
egg

Investors warned on dodgy debt firms

author image
By Reporter · May 05 2017
Reading:
egg
egg
egg

ASIC has cracked down on misleading advertising by debt resolution firms, which should serve as a warning to investors to be diligent when looking to engage with one.

ASIC has taken action again three debt management firms as part of a crackdown on misleading advertising.

Firstly, Capital Debt Solutions Australia Pty Ltd falsely claimed it was 'trusted and recommended by more than 6,000 Australians' and that their debt agreements were 'Government Approved'.

Capital Debt Solutions has now removed these claims and has paid an infringement notice of $10,800.

Debt Assist Aust Pty Ltd also falsely claimed that their debt agreements were 'Government Approved', which have now been removed.

Advertisement
Advertisement

Finally Bankruptcy Experts Pty Ltd had testimonials on their websites from customers that were unable to be substantiated. These have now been removed.

According to ASIC, while debt agreements and debt administrators are regulated, this does not mean they are 'approved' by the government.

“Recommendations and statements, like 'Government Approved' can have a strong influence when vulnerable consumers in financial hardship are seeking help with their debts,” ASIC deputy chair Peter Kell said.

“Firms must ensure their marketing materials and promotional statements are based on fact.”

Investors warned on dodgy debt firms
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

LATEST POLL

Are you seeking alternatives to equity and property in the next 12 months?

Yes - 44.4%
No - 55.6%

Total votes: 473
The voting for this poll has ended

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.