Credit Counsellors Australasia

In April 2004 as a result of four complaints from consumers the ACCC brought an action in the Federal Court of Australia against a debt agreement administrator and also joined its broker together with two directors alleging misleading conduct, misrepresentations and unconscionable and deceptive conduct. Remedies sought against the respondents were:

• declarations that they engaged in misleading and deceptive conduct and false representations;
• declarations that they engaged in unconscionable conduct; and

injunctions, order for remedial action, refunds, community service, and costs.

Publicity was afforded the action with comments also made concerning the practices of brokers in the industry regarding “front end” practices, fee structures, failure to inform debtors and aggressive advertising practices. This action though ultimately settled out of court brought public discredit to the industry and may well have been the catalyst for further reform.