The credit ombudsman has declined a broker's request to release the names of two credit repair agencies barred from using its services.
The Credit and Investments Ombudsman (CIO) - which was formerly known as COSL - last week announced it would be barring two credit repair agencies from using the ombudsman's services. CIO said the two companies were well-known, but declined to name them.
"In both cases, our decision was based on evidence that these third parties had pursued multiple complaints for an improper purpose within the meaning of our Guidelines," CIO said.
The Ombudsman said the unnamed credit repair companies had engaged in activities such as obstructing or delaying CIO's processes, making unreasonable decisions on behalf of consumers or otherwise acting contrary to consumers' best interests.
In an email obtained by Australian Broker, CIO declined a NSW broker's request to identify the two credit repair firms, so as not to unknowingly direct clients toward them.
CIO manager of client services Huong Nguyen told the broker there was "no obligation on us to provide this information".
"As credit repair agencies are not captured by licensing requirements where they are required to join an external dispute resolution scheme, we consider that naming particular agencies may cause consumers and the community to mistaken that we endorse other credit repair companies," Nguyen wrote.
