I’ve been reading through Consumer Affairs Victoria’s website and come across some important concerns. The following is from a CAV article about a Tyabb couple who are facing $3mil in fines for failing to follow the requirements.
It seems that we not only need to hear the success stories but also stories like the following so we can know what NOT to do.
MORTGAGE WRAPPER FACING POTENTIAL PENALTIES OF $3 MILLION.
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Consumer Affairs Victoria has also filed 120 criminal charges against Geeveekay Pty Ltd and its directors for entering into regulated credit contracts while not registered with the Business Licensing Authority as a credit provider and for misleading consumers into believing that it was so registered.Between December 2001 and September 2003 the company entered into 30 contracts which did not comply with Consumer Credit (Victoria) Act 1995.
“Geeveekay Pty Ltd came to the attention of Consumer Affairs Victoria through its practice of buying low value houses in Gippsland and the Latrobe Valley, inflating the prices and increasing the interest rate and then selling them on vendor terms to people who could not obtain finance from mainstream lenders,” Dr Cousins said.
It would be interesting to get a CAV guideline for what they think is acceptable when doing a wrap.
Just shows how important it is to comply with the UCCC.
I certainly have both myself and my husband registered as credit providers, and whenever I buy wrap properties in a structure I register the structure too. I’d rather go over the top that get in trouble!
It also shows the importance of using a knowledgeable lawyer when drawing up your contracts.Keep smiling
Felicity
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