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A mortgage broker offering a calculator he claimed would enable borrowers to pay off their mortgage sooner, has been found guilty by the Federal Court of misleading and deceptive conduct.
ASIC revealed yesterday that Whyte Corporation had contravened the Australian Securities and Investments Commission Act (ASIC Act) by representing the ‘EquityExcel Plan’ as enabling borrowers to pay off their mortgage sooner and make substantial savings without any increase in monthly repayments or lifestyle changes.
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Borrowers could only pay off their mortgage sooner or make substantial savings if they made considerable additional repayments, ASIC had alleged.
In agreement the Federal Court restrained the Whyte Corporation from continuing to make the representation and ordered the business to write to its customers to explain the terms of the court order and to notify ASIC if they considered they had been misled or had suffered loss.
Meanwhile ASIC also revealed yesterday that a financial planner from Victoria had been banned from providing financial services after he retained for himself a client’s $43,500 payment for income protection insurance policies – all without being the holder of an Australian Financial Services Licence.
