Wednesday, October 09, 2013 - Posted by Philip Harvey
Choice Australia reviewed Credit Repair Australia's claims that it can solve your financial problems and restore your credit report.
- the supposed credit repairs came at a high price, starting at $990 non-refundable administration fee. Choice noted that this creates more debt on people who are already financially struggling.
- there are plenty of free options for people to use in this situation (such as financial counsellors).
- Credit Repair Australia has been known to overstate its ability to improve a credit report, noting in most cases default listings cannot be removed from a credit report unless proven to be wrong.
- they had dealt with over 150,000 people in Australia in the past 10 years.
- the shonkiest things about Credit Repair Australia was its very name.
We also encounter many part IX providers who charge a $2,000 fee upfront for setting up the Part IX agreement (something that should be free). The Part IX provider collects its money by instructing the debtor to redirect all payments to itself, and then negotiates on the debtors behalf. We have seen numerous instances where the Part IX debt agreement has not been accepted by the Creditors, leaving the debtors with an additional debt.