Watchdog alleges the firm misrepresented its services including mortgage broking
New Zealand’s consumer watchdog has filed four charges against Home Funding Group (HFG) and its owner Luke Atkins, alleging the company has breached the Fair Trading Act.
Commerce Commission filed charges under the Fair Trading Act. The commission detailed the charges arose from the following issues:
- HFG allegedly misrepresented to customers that it was offering a savings scheme, when they were actually paying for financial coaching and mortgage brokering services.
- HFG and Atkins failed to provide information and documents requested by the Commission under a statutory notice.
The Auckland-based company offered services to prospective home buyers in Auckland and Wellington who found it difficult to save for a deposit or qualify for bank finance. ComCom alleges HFG told customers they would get reimbursement at the end of the contract or when they purchased a house.
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Additionally, ComCom seeks that HFG refund the fees paid by its customers. As the matter is now before the court, the commission said it will make no further comment at this time.
HFG will next appear in the Waitakere District Court on April 17.
