Refund denies ACCC allegations

By Larry Schlesinger | 21/10/2009 10:29:00 AM | 4 comments

Wayne Ormond, managing director of Refund Home Loans, has told Broker news the mortgage broking franchise will "vigorously" defend itself against allegations made by the ACCC that it breached the Trade Practices Act.

The competition watchdog announced yesterday it had commenced proceedings against Refund Home Loans and Wayne Ormond over accusations it breached the Trade Practices Act

In a statement, the ACCC alleged Ormond made "false and misleading representations in breach of the Trade Practices Act 1974 about having a special relationship with the ACCC.

"It is alleged that Mr Ormond made statements over a number of years to current and former franchisees to the effect that the ACCC:

• advised Refund Home Loans and Mr Ormond about their conduct towards franchisees, and
• approved action taken by Refund Home Loans in respect of franchisees and former franchisees with whom it was in dispute.

"The ACCC is seeking declarations that the alleged statements breached the Act, injunctive relief, publication orders, the institution of a compliance program by Refund Home Loans, personal training in the Trade Practices Act 1974 for Mr Ormond and costs."

Ormond claimed the action was in relation to a dispute "some years ago" involving ex-franchisees.

"We have no current disputes. All our franchisees are happy, I believe it is a couple of ex-franchisees with an ax to grind," he said.

Proceedings commenced in the Federal Court's fast track list in Brisbane on Monday, 12 October with a scheduling conference listed for 4 December.

Related stories:

Ormond hits BRW's Young Rich list - Refund Home Loans' founder Wayne Ormond features in BRW's Special Edition of the Young Rich.

Latest Comments

Total: 4 comment(s)

Ken Bruns Loanplanners on 22 Oct 2009 10:26 AM

One can only wish the ACCC well.

Adam on 23 Oct 2009 02:40 PM

Why is that Ken?

Mick on 26 Oct 2009 01:08 PM

Come on Ken, why do you wish the ACCC well in this instance? Have you had any dealings with Refund or Ormond, or are you just afraid of the competition?

ben on 26 Oct 2009 07:00 PM

what competition would that be,If refund HL was any real competition there would be a massive decrease in other brokers.do you really think pople will simply do business with someone becasue they are paid to. experience and personal service goes a long way.
I agree with ken, i wish the ACCC well.
If this franchisor truly has nothing to worry about then he wouldnt be scared.

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