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Franchisees could buy Refund

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Australian Broker | 14 Oct 2011, 06:00 AM Agree 0
Franchisees could put in a bid to buy Refund Home Loans following the company's announcement it will enter voluntary administration
  • Broker | 13 Oct 2011, 09:55 PM Agree 0
    Well it was only a matter of time, as their business model was seriously flawed from the day they opened their doors. It’s hard enough to make a decent income in this industry, without gifting a portion of your income away and therefore creating unrealistic expectations from borrows that wish to utilise a broker, may those that reimburse trail go the same way asap, for the betterment of this industry.

    Does your mechanic, doctor, dentist, physio or accountant give you a kick-back on his fees received; I doubt they would survive if they did, why brokers would ever consider this is beyond my imagination.

  • anne1966 | 14 Oct 2011, 07:59 AM Agree 0
    So what about Wayne Ormond - he was reported as very wealthy - why cant he save his poor franchisees for only $2.5m? What's the rest of the story we ar enot being told yet? I recently looked at their franchises and could tell they were struggling. They had a great customer idea but just way too many costs and Wayen kept goign on TV drumming up low value customers with his "if you're struggling come to us" message. I then looked at other models and I am not here to promote anyone but there are some new players around that offer customer refunds and have much easier businesses to run - I wouldnt be a broker these days and I feel sorry for the franchisees that are now being pressured to dip into their pockets further to save waynes world
  • anne1966 | 14 Oct 2011, 09:11 AM Agree 0
    So what about Wayne Ormond - he was reported as very wealthy - why cant he save his poor franchisees for only $2.5m? What's the rest of the story we ar enot being told yet? I recently looked at their franchises and could tell they were struggling. They had a great customer idea but just way too many costs and Wayen kept goign on TV drumming up low value customers with his "if you're struggling come to us" message. I then looked at other models and I am not here to promote anyone but there are some new players around that offer customer refunds and have much easier businesses to run - I wouldnt be a broker these days and I feel sorry for the franchisees that are now being pressured to dip into their pockets further to save waynes world
  • Jon | 14 Oct 2011, 09:55 AM Agree 0
    A boring business and a flawed structure. No imagination and surprising lack of vision
  • oldBroker | 14 Oct 2011, 09:56 AM Agree 0
    Worst. Business. Concept. Ever. And they deserve to fade into oblivion.
  • Nick | 14 Oct 2011, 11:02 AM Agree 0
    I'm suprised they lasted as long as they did! It just seemed like a very lazy business model from the start that was doomed to fail. It's what happens when you have to "buy" business.
  • positivebroker | 14 Oct 2011, 12:17 PM Agree 0
    I really feel for the Franchisees who bought in on good faith but the exist of Refund is a good thing for the industry. Any downward pressure on commissions is only going to reduce competetition as more and more brokers realise they can earn money working for wages! And that's all Refund did. Placed downward pressure on commissions!
  • FinanceTart | 14 Oct 2011, 12:39 PM Agree 0
    It was more than a flawed model - it was designed for franchisees who had zero sales skills and the only means to obtain client business was to buy it by way of refunds!!!
  • megs | 14 Oct 2011, 03:13 PM Agree 0
    I feel for the franchisees who have obviously been hood winked into buying a Refund Franchise.
    over 12 months ago I attended a PD day with my now previous Aggregator and among the group were several Refund Frachisees. I was appalled and even more concerned with their lack of knowledge of the basics of lending i.e. the difference between PPR and IP, Principal and Interest or Interest Only. too scary to think theses people are out and about selling loans to the public and assisting them to make the biggest decision of their life.
    How can people with no knowledge become Credit Reps. seems to me the whole Licensing, debacle is really not protecting the public. It is farcicle, at least now with Refund gone hopefully it will limit the numbers of Brokers entering are field/industry who have no experience.
  • Ben | 17 Oct 2011, 09:10 AM Agree 0
    There is alot of focus here on the system and how peopl,e think it is flawed, yet other rebate companies are doing ok. What seems to be overlooked is the fact he was the wayne was bankrupt when he started the company. courts records show he has had problems paying his debts since before the floods. owing money to a horse racing company and a car repairer to name a couple. SO if you think that real estate and financial planning is going to come out unscathed I highly doubt it. Look at the first FP model it went no where, communications where is that now.
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