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Investors warned on dodgy debt firms

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.

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
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Dave Shegonnacrash - Is that the tall poppies that pay your wages or fees? When tall poppies fall, jobs vanish quickly. I will be cutting a few jobs when the crash comes........
Anonymous - It is time that we had a Roya Commission just into those dreadful government departments who appear to do everything to protect the perpetrators and.......
Ross Cardillo - And i ask the question again, who is going to jail from Commonwealth Bank for their actions? They should be sharing a cell with their mates at ASIC
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Anonymous - Really....$300k is a punishment amount!!!!! and on top asking them if they are happy....Really shame on ASIC, sorry to say, they are IMPOTENT at every.......