Solve My Debt Now company unlikely to contest liability
On 8 August 2023, ASIC commenced proceedings against Bakken Holdings for operating “Solve My Debt Now” without a license, engaging in unconscionable conduct, and making false claims. Bakken accepted liability but has yet to contest penalties. A hearing is scheduled for 6 March 2025.
On 8 August 2023, the Australian Securities and Investments Commission (ASIC) commenced proceedings against Bakken Holdings Pty Ltd (Bakken), the operator of “Solve My Debt Now”, a debt management business.
Relevantly ASIC alleges that Bakken:
1. carried on a financial services business without a financial services licence;
2. engaged in unconscionable conduct in contravention of the ASIC Act 2001 (Cth); and
3. made false and misleading representations in contravention of the ASIC Act 2001 (Cth).
In making these allegations, ASIC claims that the fees charged by Solve My Debt Now were greater than the debt reduction that they achieved. Meaning that clients were worse off having used the Solve My Debt Now service.
At the Case Management Hearing on 3 December 2024, Bakken indicated that it will not contest liability (i.e. it will accept the contraventions alleged by ASIC). However, there is presently no indication about whether Bakken will contest the penalties sought by ASIC, which include pecuniary fines and publishing their conduct.
The matter is listed for a further Case Management Hearing on 6 March 2025.
ASIC proceedings such as this, act as an important deterrent, but rarely result in a tangible outcome for the aggrieved clients (i.e. compensation for their loss). This is where FD Legal may be able to assist.
If you need help recovering your debts or if you are being asked to pay back a debt you do not owe, please contact FD Legal on 1300 433 533 or email enquiries@fdlegal.com.au to discuss your matter further.
