A major step has been taken National Australia Bank when it recently declared it will stop dealing with unlicensed debt management firms offering financial support in Australia.
Financial Support Melbourne, Victoria, Perth, West Australia, and Other States and Territories
This move will make financial support in Melbourne, VIC, and well as Perth, WA, and other states and territories in Australia safer and easier to access for those in financial trouble who could be prey to "debt vultures".
NAB has announced it is cracking down on unlicensed fee-charging debt management firms, making expert, qualified financial support in Australia easier to discern.
NAB reason that around one in 10 of its customers in financial hardship engaged operators that charge an upfront fee to consumers, proposing to help them negotiate with lenders, repair their credit file, restructure debts, or arrange repayment plans but do not fulfil promises.
With the number of consumers in hardship soaring as a result of COVID19 the bank said its action was aimed at protecting customers from potentially ending up in a worse situation.
NAB's group executive for personal banking, Rachel Slade, said: “We continue to check in with our customers who have requested payment deferrals due to the impact of COVID-19 and know many still need our support through this crisis.
“However, we also understand that some customers won’t be able to bounce straight back. As more Australians seek help it is important that we no longer deal with unlicensed, fee-charging debt management providers.”
Murray Grayburn, Chairman of the Personal Insolvency professionals Association (PIPA) and director of respected and qualified debt management council, Croft and Gray, said of the decision: “An important part of the role as a director of PIPA is to ensure that the Australian Public know that by engaging with Croft and Gray (as a registered Debt Agreement Administrator and a PIPA member) that we are regulated by the government (Australian Financial Services Authority) and provide a professional financial support in Australia with its offices in financial support in Melbourne, VIC and Perth, WA, service unregulated debt vultures can’t.”