In July 2017, ASIC began legal proceedings against credit repair business Malouf Group Enterprises Pty Ltd (MGE) and its director Mr Jordan Francis Malouf. MGE is also known by several trading names, including Credit Wash, Credit Clean Australia, Credit Fix Australia and Clean Your Credit.
ASIC allege that, “[MGE] made false or misleading representations and engaged in unconscionable conduct in the operation of its credit repair business, including by representing to consumers that [it] could remove negative listings from their credit file when in fact often nothing could actually be done about the listings.”
MGE charged a fee of up to $1,095 for credit repair services.
ASIC alleges that in some cases, there were no issues with the person’s credit file.
ASIC alleges that this conduct was unconscionable, and that MGE made false or misleading representations, in breach of the Australian Consumer Law.
Penalties of up to $1.1 million can be imposed on a corporation for breaches of the Australian Consumer Law, while individuals may be liable for penalties of up to $220,000.
ASIC is seeking declarations that MGE made misleading representations and engaged in unconscionable conduct and declarations that Mr Malouf was knowingly concerned in those contraventions.
ASIC also seeks orders to stop MGE from continuing to make false representations and requiring Malouf group to establish compliance programs. ASIC will also seek fines for MGE as well as refunds for consumers.
You can read the full media release here.
CCLSWA has assisted many members of the WA community who have dealt with credit repair companies and welcomes the action commenced by ASIC.
If you would like more information on how credit reporting can affect you, please visit our advice page on Credit Files.
If you are considering using the services of a credit repair agency, or you are unhappy with a service you have recently received, you can contact CCLSWA on (08) 9221 7066 for free and confidential advice.