ASIC commences action against Sydney mortgage broker
The Australian Securities and Investments Commission (ASIC) has commenced proceedings in the Federal Court against a Sydney mortgage broker and its sole director following concerns over potentially misleading or deceptive statements regarding mortgage calculator, EquityExcel Plan.
ASIC alleges that Whyte Corporation and Gavin Whyte have contravened the ASIC Act by representing that the EquityExcel Plan allows borrowers to pay off their mortgage sooner and make substantial savings with no increase in their monthly payments or changes in their lifestyle.
The watchdog alleges that this representation is misleading, or likely to mislead, as a borrower can only pay off their mortgage sooner or make substantial savings using the EquityExcel Plan if they make considerable additional repayments over and above their minimum monthly repayments.
ASIC is seeking declarations that Whyte Corporation and Whyte contravened the ASIC Act and orders restraining them from continuing to make the representations.
The matter returns to the Federal Court on March 11, 2009.
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