Commerce Commission says first-home buyers scheme misled
Wednesday, 10 April 2019
A company that offered would-be buyers a scheme to help them save for a house is facing charges under the Fair Trading Act.
Home Funding Group is run by Luke Aitkins.
The group faces two representative charges that it misrepresented to customers that it was offering a savings scheme that enabled customers to save a deposit for a house, when they were actually paying for financial coaching and brokering services.
The commission has also filed one charge each against the business and Atkins for failing to provide information and documents requested by the commission under a statutory notice.
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The group is an Auckland-based company which offered services to prospective home buyers in Auckland and Wellington who found it difficult to save for a deposit or qualify for bank finance.
The commission alleges that, during face-to-face presentations, customers were told that they would get back payments made at the end of the contract or when the customer was ready to purchase a house.
But, under the terms of the contract, customers were not paying into a savings scheme but instead were paying for services and the potential provision of additional home finance upon completion of the contract.
The commission wants the court to order the group to refund the fees paid in connection with some agreements.
As the matter is now before the Court, the Commission will make no further comment at this time.
HFG will next appear on April 17 in the Waitakere District Court.
Aitkins has been associated with earlier ventures Welcome Home Foundation, which offered to help with funding for families trying to put together a deposit, and Noah's Ark, which also promised to help save for a first home but was criticised for its fees.