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.
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