Credit Wash not clean

Firm claimed it could remove credit black marks

A GOLD Coast organisation and its owner have been ordered to pay $1.7 million in fines and refunds after the Federal Court found their credit repair businesses had misled customers for two years.

Jordan Francis Malouf and his company, Malouf Group Enterprises, traded under names including Credit Clean Australia, Credit Wash, Credit Fix Australia, and Clean Your Credit, claiming they could remove negative listings on customers’ credit files.

The court fined Malouf and his company a total of $500,000, taking into account another $1.1 million, he agreed to repay customers stung by the business in 2014 and 2015.

A statement from corporate regulator Australian Securities and Investments Commission said some of the consumers affected did not have any negative listings on their credit files to begin with.

ASIC alleged Malouf Group’s sales tactics misrepresented its services as it hadn’t checked if the targeted customers had negative listings or if any negative listings were able to be removed.

The court found Malouf Group engaged in misleading or deceptive conduct through false statements and testimonials on its websites and in its telemarketing sales scripts.

It found tactics used by the group to induce consumers to enter contracts were both “disturbing and unconscionable”, describing the conduct as “cynical and calculated”.

It found Malouf, the sole director of Malouf Group, was “knowingly involved in the contraventions of the Australian Consumer Law”, ASIC’s statement said.

The court said Mr Malouf had devised and implemented the business model of Malouf Group

He had approved the content of the websites and advertising, approved the content of the sales scripts, and was involved in the training and supervision of sales staff to ensure they followed the scripts.

ASIC deputy chair Peter Kell said consumers were able to request corrections to their own credit files at no charge.

“Consumers who seek out credit repair services should understand that there can be no guarantees that their credit history can be ‘cleaned’,” he said.