The Consumer Action Law Centre has stepped up the growing campaign against credit repair companies, calling for them to be regulated.Claiming that CRCs, claims management companies and other agents representing consumers in disputes with their credit providers are more likely to entrench financial hardship rather than alleviate it, CALC said such companies should be licensed and regulated by the Australian Securities and Investments Commission."They charge very high up-front fees, sometimes thousands of dollars, for services that could otherwise be provided free of charge by an industry ombudsman, financial counselling service of community legal centre," CALC saidCALC's criticisms of the growing credit repair sector echo those of the Financial Ombudsman Services and the Credit Ombudsman Service Ltd.Last month, FOS issued a consultation paper setting out proposed changes to its terms of reference, in which it said would impose tighter rules on the activities of agents and would stop an applicant using an agent where it felt the agent was being unhelpful.FOS said there was value in consumers having representation, especially if they had language difficulties, mental disabilities or were otherwise vulnerable. However, it said there was evidence that some fee-charging representatives "inappropriately utilise external dispute resolution services."In its submission to the Financial System Inquiry, FOS said Australia's external dispute resolution system was in danger of being undermined by predatory claims management companies.FOS said regulators needed to guard against the emergence of the type of industry that had developed in the United Kingdom, where the UK FOS reported that 57 per cent of all disputes about alleged mis-selling of payment protection insurance it received in 2013 were lodged on behalf of consumers by claims management companies.It said there were several problems with the claims management companies. They add costs for consumers and they tend make the EDR process more litigious, which adds to costs and may extend the time taken to resolve disputes.Earlier this year, COSL complained that agents often charge consumers large fees to deal with issues that could be managed without charge. COSL said credit repair companies were also claiming to be able to have default listings or other negative filings removed from credit reports, when in most cases these records could not be removed.CALC said more Australians were seeking help from credit repair companies. "These consumer are often experiencing acute financial stress, meaning that they are vulnerable to high pressure sales techniques and unrealistic promises," it said.CALC said that since the introduction of new credit reporting rules, the need to examine the activities of CRCs had become more urgent."Comprehensive credit reporting may increase the number of errors and adverse listings in credit reports and this, in turn, may create greater demand for CRC services," it said.Under CALC's proposed licensing regime, rules would include a prohibition on up-front fees and a mandatory cooling-off period.CRCs would be required to publish information about their fees and terms and conditions. Clients would be entitled to a refund if the CRC didn't do what it promised to do.CRCs would be required to provide the