ASIC has issued two infringement notices totalling $37,560 to debt management company Chapter Two Holdings Pty Ltd for alleged misleading statements made on its website.
Between 1 August 2023 and 14 March 2024, Chapter Two’s website included statements that the company had wiped $80 million in debt and saved consumers $30 million in interest, statements which ASIC alleges are misleading.
ASIC alleges that these statements were false or misleading as Chapter Two was not able to substantiate the figures, nor was there a reasonable or evidence-based justification for the statements.
The statements were removed from the website on 14 March 2024.
Chapter Two paid its first instalment towards the infringement notices on 12 April 2025.
ASIC may further investigate and file civil penalty proceedings if Chapter Two fails to pay the remaining instalments.
Debt management and debt collection misconduct is a 2025 enforcement priority. ASIC seeks to enhance public confidence by ensuring that debt management firms and credit providers accurately represent their services and do not mislead prospective clients.
ASIC currently also has proceedings underway against debt management firm, Bakken Holdings Pty Ltd (trading as Solve My Debt), following concerns of substantial consumer harm (23-212MR).
This matter was referred to ASIC by the Australian Financial Security Authority (AFSA).
Collaboration between ASIC and AFSA demonstrates a whole-of-system approach to regulation through education, compliance and enforcement. This approach supports community and financial outcomes for Australian consumers and business.
Background
Chapter Two was granted Australian credit licence no. 531408 on 24 June 2022 and is licensed to provide debt management services and engage in activities other than as a credit provider.
Under section 12GX of the Australian Securities and Investments Commission Act 2001 (Cth), ASIC may give an infringement notice to the person if ASIC believes on reasonable grounds that a person has contravened an infringement notice provision.
Issuing infringement notices provides a proportionate and prompt regulatory response to the alleged contravention and is likely to deter credit providers from engaging in similar conduct in the future.
Payment of an infringement notice is not an admission of liability.
The specific reasons for ASIC’s concerns are set out in the two infringement notices which have been published on the infringement notices register.
Memorandum of Understanding with AFSA
AFSA identified the statements which are subject to the infringement notices.
On 16 November 2023, ASIC and AFSA signed a refreshed Memorandum of Understanding (MoU), following the last update in 2014.
The updated MoU between ASIC and AFSA establishes a framework for liaison, assistance, and information exchange. For example, AFSA alerted ASIC regarding the potential breaches by Chapter Two, which ultimately led to ASIC investigating and issuing two infringement notices.
This matter illustrates how the agencies collaborate to pursue shared interests and show their dedication to a comprehensive Australian Government approach, while safeguarding and enhancing confidence in the financial system.
For consumers who are experiencing financial hardship, ASIC’s Moneysmart has independent information regarding free alternatives to help you manage debt. If you need additional support with getting on top of debt, call the free National Debt Helpline on 1800 007 007 and speak to a financial counsellor. You can also use the financial counsellors map available on ASIC’s Moneysmart website to find a counsellor in your area.