22 September 2004: The ACCC instituted proceedings in the Federal Court, Melbourne, against Wizard Home Loans Pty Ltd, alleging breaches of the misleading and deceptive conduct provisions of the Trade Practices Act.
The ACCC alleges Wizard breached s. 52 of the Act by placing advertisements for mobile lending managers in newspapers in New South Wales, Victoria and Queensland which were liable to mislead people into believing the positions were employed positions when they were self-employment opportunities.
The ACCC further alleges that annual remuneration figures provided to the managers were likely to mislead.
The ACCC is also taking representative action seeking compensation on behalf of an individual that responded to an advertisement and accepted one of the positions.
A directions hearing for this matter is listed before Justice Peter Gray on 20 December 2004 in the Federal Court, Melbourne.
20 December 2004: A directions hearing is scheduled for 11 March 2005.
11 March 2005: The next directions hearing is scheduled for 9 May 2005.
9 May 2005: The Federal Court, Melbourne, made orders by consent declaring Wizard misled Mr Cassar in an interview for a position as a mobile lending manger with Wizard. Wizard is instructed to pay Mr Cassar a confidential sum in compensation representing lost earning opportunity. The court also instructed Wizard to pay costs.
Wizard also agreed to give a secton 87B undertaking to the ACCC that it will not for a three year period make representations to any mobile lending manager candidate about the annual commission that a person may earn unless there are reasonable grounds after considering:
the average annual commissions earned by mobile lending managers at that time
the average annual commissions earned by mobile lending managers engaged in the geographical area where that lending manager will be or is engaged
the level of residential sales and sale prices in the geographical area where that mobile lending manager will be or is engaged
the number of mobile lending managers engaged at that time and to be engaged during the next 12 months in the same geographical area.
As part of the court enforceable undertaking Wizard will implement and maintain a trade practices compliance program for a period of three years.
