The Credit Ombudsman Service has asked the body drafting a new credit reporting code to include a rule that credit providers and credit reporting bureaus should not deal with the agent of a consumer that is charging a fee for the service.The ombudsman is hoping to use such a rule to put the brakes on the so-called "credit repair" industry, which has been the subject of a number of complaints in recent years.Credit repair agencies work by obtaining authorisation from consumers to access their credit records; and then, if they find incorrect entries, they make a complaint to the credit reporting bureau or the credit provider (or the ombudsman) and ask for the entries to be removed.The ombudsman is concerned that the average fee for this service is $1000 per listing and the consumer is often a low income earner with a small credit contract.The ombudsman said one-third of complaints it receives about alleged incorrect credit file entries are from credit repair agents. The ombudsman would provide the same service to the consumer at no cost.In April, The Australian Retail Credit Association, which represents businesses in the credit reporting sector, released a draft of a new code that will guide industry practice under the comprehensive credit reporting regime that comes into force in March next year.The code covers auditing and compliance rules, dispute resolution requirements, the definition of late payments, the management of hardship requests, and disclosure obligations.The ombudsman's proposed addition to the code says: "If a credit reporting bureau or a credit provider receives a correction request, whether from the individual to whose credit record the correction request relates or from another person purporting to act on their behalf, the CRB or CP must seek confirmation that no fee or other payment is being made by the individual for advice, assistance or representation in relation to the request."The CRB or CP would not accept the correction request unless this conformation is received.