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ISCOVER
By Simon Parker
SV Partners, the administrator appointed to manage Refund Home Loans, has failed to pay any commissions to franchisees since September 15, a Refund franchisee has told The Adviser.
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The failure to pay commissions comes despite initial assurances to the contrary, and concerns had been raised early this year about Refund Home Loan’s ability to manage the business according to the source.
“Commissions were due on 15 October – two days after administration began – and again today [14 November],” the franchisee said.
The franchisee, who wished to remain anonymous, told The Adviser that the most recent communication from SV Partners was received on November 4, although this failed to outline whether they would be paid outstanding commission.
This is despite an earlier letter from SV Partners, dated October 28, which said a payment that had been due to be made that same day would not be made, although more news on the outstanding payment would be provided by November 4.
“Despite their assurances, which you have republished, SVP have failed to pay any commissions for any deals, regardless of settlement date,” the franchisee told The Adviser.
“Many brokers have issued breach notices, which take 14 days before termination notice can be given. Some termination notices have already been issued to Refund.”
The franchisee, who signed up to Refund in 2008 for a total cost of $62000, was disappointed with the lack of communication from the administrator.
“They’re not communicating with us, at all,” the franchisee said. “The communication they’re giving to us is just negligible.
“This is our livelihood,” the franchisee continued. “I’m a fulltime, 100 per cent broker, and that’s what I do for a living. There’s no other household income. For most of the last year and half, I’ve been the number one broker in the state for Refund Home Loans.”
