AD08-79 ASIC commences action against Sydney mortgage broker
Friday 5 December 2008
ASIC has commenced proceedings in the Federal Court of Australia against a Sydney mortgage broker and its sole director following concerns over potentially misleading or deceptive statements regarding a mortgage calculator, known as the EquityExcel Plan.
ASIC alleges that Whyte Corporation Pty Ltd and Mr Gavin Whyte have contravened the Australian Securities and Investments Commission Act(ASIC Act) by representing that the EquityExcel Plan allows borrowers to pay off their mortgage sooner and make substantial savings with no increase in their monthly payments or changes in their lifestyle.
ASIC alleges that this representation is misleading, or likely to mislead, as a borrower can only pay off their mortgage sooner or make substantial savings using the EquityExcel Plan if they make considerable additional repayments over and above their minimum monthly repayments.
ASIC is seeking declarations that Whyte Corporation and Mr Whyte contravened the ASIC Act and orders restraining them from continuing to make the representations.
The matter returns to the Federal Court on 11 March 2009.
ASIC Website: Printed 12/16/2009
