PIS mortgage partner admits false statements

Refund Home Loans and its director Wayne Ormond have admitted in the Federal Court to making false and misleading statements to franchisees, according to the Australian Competition and Consumer Commission (ACCC).

The ACCC instituted proceedings against Refund in October last year after receiving complaints about representations made by Ormond.

The statements made by Ormond implied that Refund Home Loans had been given approval by the ACCC in relation to the treatment of franchisees.

Ormond has now admitted making statements such as “Now I’ve spoken to the ACCC. I’ve done everything in accordance with the law,” and “Mate, I’ve had meetings with Graeme Samuel himself. I have nothing to worry about,” which were found to be false, misleading and deceptive, and in breach of the Trade Practices Act.

In addition to the declarations the Federal Court ordered injunctions against Refund and Ormond from making such statements in the future, as well as ordering that corrective statements be made to franchisees and the implementation of a compliance program, including training for Ormond.

“Using the name of the ACCC or individual ACCC officers as a means of discouraging franchisees from exploring their own legal rights is reprehensible,” said ACCC chairman Graeme Samuel.

Refund has a joint venture with Professional Investment Services (PIS) allowing Refund to add PIS’s financial planning products to its existing home mortgage products.