There is lots of press about the concerns within the credit repair industry. Some companies are reported to have poor success rates, while others have been known to overcharge. It’s important to know the facts and to be aware that there are trustworthy credit repair companies who really can change your life.
Some of these concerns state are there is a lack of regulation. I have even read that all credit repair companies are wrongly charging people for services that the relevant Ombudsman can perform for free.
I feel that much of this negative press requires rebuttal.
I accept that not all within the credit repair industry are acting honourably or in the best interests of their clients, however, what industry can truly claim that all practitioners are above reproach, one only needs to look at the legal industry as an example. While it is true to say some lawyers are corrupt it would be unfair to say all lawyers are corrupt, the same can be said for the credit repair industry.
Many people think that the lack of regulation within the credit repair industry is cause for concern. I think we need to put this into perspective. While I agree that the industry does need independent and sustainable regulation this alone does not ensure industry compliance. Regardless of how high the barriers to entry are people with questionable ethics will find a way to operate if they feel there is a dollar to be made. Professions such as the law, accounting and financial planning carry high quality standards as well as strict industry compliance yet they still have their share of corruption.
One comment I have read was “anyone can become a credit repair person” the point of this comment was to suggest someone could enter the credit repair industry without any relevant experience and therefore this would be wrong. I completely agree that it would be appropriate for someone with no relevant experience or knowledge to operate represent themselves in credit repair however this is not the same for someone that had significant law, credit reporting or finance experience, the key is relevant experience.
Let’s look at the mortgage brokering industry, an industry that still has its fair share of questionable operators even after regulation. To operate as a mortgage broker a person must hold an Australian Credit Licence (ACL). While this sounds impressive given the person does not have a criminal record as is willing to put in a little study this licence is relatively easy to obtain, in fact, there are companies that will do most of the work for people to obtain this licence.
My point is the fact a person holds this licence does not mean they are an effective mortgage broker or that they will do the right thing by their clients. Let me ask you a question, if you were looking to engage the services of a mortgage broker, would you pick one that had just obtained an ACL or one that had years of industry experience? the perfect answer would be both however nothing beats industry experience so don’t be fooled into thinking that simply regulating credit repair will be a magic bullet and instantly clean up the industry.
As the director of Clean Credit Pty Ltd, a company that specialises in helping people restore their credit files I see the good work we do for people every day. There is nothing better than being able to help someone turn their lives around.
The concerns about the credit repair industry are valid to a point. However, the credit repair industry has gone through significant reform in recent times and companies such as Clean Credit are here to help you. Get in touch with one of our credit repair specialists today and let us prove how amazing our service is.
John Dickinson
Clean Credit Pty ltd