Code of Conduct seeks to stamp out dishonest credit repair

Media Release

CRIAA Code of Conduct seeks to stamp out dishonest credit repair practice.

17 July 2012

The credit rating repair industry now has an official Code of Conduct, with the newly formed Credit Repair Industry Association of Australasia (CRIAA) publishing its ASIC-inspired code yesterday.

Spokesperson for the CRIAA, interim board member Graham Doessel says the Code takes into account comment from ASIC within its framework and aims to promote credibility and transparency within the credit repair industry.

“The credit repair industry has gone largely unregulated up till now, and this has led to dodgy practices from some credit repairers, and to broad criticism of the industry from outsiders.”

“This Code of Conduct will give a strong framework for what is acceptable practice for credit repair, in so doing raising the service level for consumers who choose a CRIAA member credit repairer,” Mr Doessel says.

The CRIAA Code of Conduct is a comprehensive 15-point document which outlines the rudimentary requirements for membership to the CRIAA, including education standards, and specific requirements for behaviour, including the ramifications for non-compliance which may include sanctions and fines for its members.

“The Code insists on transparency of advertising and fees as basic requirements of CRIAA Members, and specifically insists on conduct which does not mislead the consumer at any stage – we see this as paramount to bringing the industry forward with credibility,” Mr Doessel says.

The Code of Conduct also outlines internal and external dispute resolution parameters for the credit repair industry.

“It is important for an emerging industry to have some avenue for consumers to make complaint and resolve disputes, from both within the industry and to external dispute resolution services,” he explains.

Mr Doessel says the CRIAA and its Code of Conduct will assist in bringing validity to the industry of credit repair as part of the credit reporting landscape.

“Credit repairers have been highly sought out by more and more consumers because they have had difficulty in correcting credit rating inconsistencies themselves. So credit repairers continue to play a crucial role in maintaining accuracy in credit reporting, he says.

The CRIAA interim board currently includes 6 credit repair industry members, and two finance industry members, including President of the Finance Brokers’ Association of Australia, Peter White.

The CRIAA has had interest from a variety of stakeholders both inside and outside the industry and intends to allow different categories of membership to accommodate this diversity.

“The CRIAA will be the genuine representative body of the credit repair industry and all its stakeholders, so we’re not going to be exclusive – it will incorporate brokers, credit reporting agencies, Ombudsmen and any other stakeholders which impact the industry within its membership categories,” Mr Doessel says.
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