Australian Securities & Investments Commission launches review of debt management and credit repair services

The Australian Securities & Investments Commission (ASIC) will launch a review of the debt management and credit repair sector to assess how firms are operating and complying with legal obligations, amid concerns that some licensees may be failing to engage in credit activities efficiently, honestly and fairly and leaving financially vulnerable consumers worse off. ASIC’s surveillance will examine the business models used across the sector, which comprises around 100 licensees, and assess instances where firms may have failed to meet the terms of debt management agreements, charged high fees for no or limited services, or communicated inadequately with clients. The review is framed against the licensing regime introduced in 2021, under which firms must hold a credit licence, comply with the National Consumer Credit Protection Act 2009 and be a member of the Australian Financial Complaints Authority, and follows recent ASIC actions including proceedings against Bakken Holdings Pty Ltd and infringement notices issued to Chapter Two Holdings Pty Ltd for alleged misleading website statements. ASIC intends to publish insights from the review in a public report in 2026 and has signalled enforcement action where unfair or unlawful practices are identified.