Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Choice slams Refund administration bungle

Notify me of new replies via email
Australian Broker | 17 Nov 2011, 07:00 AM Agree 0
Choice has decried the treatment of embattled Refund franchisees by its administrator, saying brokers are not seeing 'a cent' of the commissions Choice is paying putting SV Partners in breach of 'moral obligations'
  • Patrick McMenamin | 17 Nov 2011, 12:17 PM Agree 0
    The agreement with Refund no doubt provides that trailers are forfeit in the event of insolvency. Are the downstream franchisees and brokers Choice's concern? If the Administor of Refund acts other than in the interests of secured creditors first then unsecured creditors they would be liable. Brokers and franchisees are not creditors they have a "chose in action" interest in the income of Refund, but only whilst Refund is a solvent going concern. Choice owns the trailers now and could offer ex-Refund brokers and franchisees a portion of these trailers as an incentive to sign up direct with Choice. I have been telling brokers for years and years that their whole business survival is dependent upon good financial management by their relevant aggregator. Wake up people, wake up ASIC, wake up ACCC this is an industry wide time bomb.
Post a reply