Broker pinged for misleading claims
A mortgage broker who said he shopped around for the best deal for clients - but didn't - has been fined $9,000.
Monday, November 17th 2003, 8:01AM
The Commerce Commission laid charges against Fisher in regards to advertising on Sounds FM between April 2001 and February 2002 in which representations were made that "they’ve got better rates than you know who" and that "they’ll shop around to make sure you’ll get the best deal".
Director of Fair Trading Deborah Battell said that during that time, Fisher did not shop around to get the best deal, but put almost all loans through one finance company, Blenheim Finance Limited of which he was director and 50% shareholder.
"In addition, Fisher’s loans were not the best deal. In a random sample of 30 loans, in each case his were more expensive than those of both his main competitor and those that would have been available through other financiers at the time," Battell said.
Battell said that the Commission had taken action against Fisher because in the Commission’s view his claims were false and unfair to consumers and competitors.
"It is important for consumers to be able to trust claims made by businesses, especially claims they cannot test for themselves. The actions of lenders like Fisher also undermine public confidence in the business of legitimate brokers.
"Consumers had no way of knowing that Fisher was not shopping around to get the best deal," Battell said.
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