ASIC Commences Proceedings Against Credit Repair Business

The Australian Securities & Investments Commission ("ASIC") has commenced legal proceedings against a Queensland based credit repair business for allegedly making false or misleading representations and allegedly engaging in unconscionable conduct.

The business, Malouf Group Enterprises Pty Ltd, who trade under several names including Credit Clean Australia, Credit Wash, Credit Clean Australia and Clear Your Credit, have had Court action commenced following an investigation by ASIC that alleges between 01/01/2014 and 31/12/2015 that representations were made that they could remove negative listings from an individuals credit file when nothing could be done about the listings. ASIC also allege that in several cases there was nothing wrong with the consumers individual credit file.

ASIC is seeking the following Orders that:

• Declarations that Malouf Group made representations that were false or misleading, and engaged in conduct that was misleading or deceptive and unconscionable;
• Declarations that Mr Malouf was knowingly concerned in the contraventions by Malouf Group;
• Orders to stop Malouf Group and Mr Malouf from continuing to make false or misleading representations;
• Fines;
• Refunds for consumers; and
• Orders requiring Malouf Group to establish compliance and training programs and to publish corrective notices.

ASIC are also seeking maximum penalties to be imposed by the Court for breaches of Australian Consumer Law which are $1.1 million for corporations and $220,000 for an individual.

The case has been set down for a Directions Hearing in the Brisbane Federal Court on 12 July 2017.

Source: ASIC Media Release - 17-226MR ASIC Commences Proceedings Against Credit Repair Business