The Australian Competition and Consumer Commission has obtained interim orders in the Federal Court to prevent the advertising of a personal loans facility aimed at people such as sole parents, pensioners, bankrupts and people with bad credit.
The ACCC has filed proceedings against Cedric Desmond Collinson, trading as CDRC's Financial Network, and/or The Financial Network. and/or SE Financial Network, alleging that financially disadvantaged consumers were being targeted and misled into making expensive 1900 phone calls charged at $5 per minute in the belief that they would obtain a loan.
The ACCC has alleged that advertisements placed by Cedric Desmond Collinson in various newspaper around the country represented to the public that personal loans were available to callers from the operator of 1902 numbers, or alternatively, that the operator arranged personal loans on behalf of callers. The ACCC alleges Cedric Desmond Collinson made false or misleading representations to callers as to their prospects of obtaining a loan and, in some instances, that they had been successful in obtaining approval for a credit card when they had not. It is also alleged Cedric Desmond Collinson had placed advertisements in newspapers in Victoria, New South Wales, South Australia, Tasmania and the Australian Capital Territory.
This matter was originally identified by the Victorian Office of Fair Trading and Business Affairs which alerted the ACCC after a series of complaints. In recognition of the national scope of the conduct, proceedings were instituted by the ACCC following a joint investigation by it and the VOFTBA on 12 August 1998.
On Thursday 13 August, Justice North in the Federal Court, Melbourne, the ACCC obtained interim orders restraining Cedric Desmond Collinson, until the determination of the proceedings from representing to customers, either by way of advertisements or otherwise, that he secures, or arranges on their behalf personal loan facilities; that callers had a high chance of success of obtaining a loan; that CDRC's Financial Network, and/or The Financial Network, and/or SE Financial Network had assisted many persons to successfully obtain loans, or that the caller had been successful in obtaining approval for a credit card with a particular lending institution.
The interim orders effectively preclude Cedric Desmond Collinson from dealing with his assets or any monies obtained as a result of consumers calling the 1902 numbers and from receiving further monies from this source.
The next directions hearing is listed for 24 August 1998, Melbourne before Justice North.
The ACCC has filed proceedings against Cedric Desmond Collinson, trading as CDRC's Financial Network, and/or The Financial Network. and/or SE Financial Network, alleging that financially disadvantaged consumers were being targeted and misled into making expensive 1900 phone calls charged at $5 per minute in the belief that they would obtain a loan.
The ACCC has alleged that advertisements placed by Cedric Desmond Collinson in various newspaper around the country represented to the public that personal loans were available to callers from the operator of 1902 numbers, or alternatively, that the operator arranged personal loans on behalf of callers. The ACCC alleges Cedric Desmond Collinson made false or misleading representations to callers as to their prospects of obtaining a loan and, in some instances, that they had been successful in obtaining approval for a credit card when they had not. It is also alleged Cedric Desmond Collinson had placed advertisements in newspapers in Victoria, New South Wales, South Australia, Tasmania and the Australian Capital Territory.
This matter was originally identified by the Victorian Office of Fair Trading and Business Affairs which alerted the ACCC after a series of complaints. In recognition of the national scope of the conduct, proceedings were instituted by the ACCC following a joint investigation by it and the VOFTBA on 12 August 1998.
On Thursday 13 August, Justice North in the Federal Court, Melbourne, the ACCC obtained interim orders restraining Cedric Desmond Collinson, until the determination of the proceedings from representing to customers, either by way of advertisements or otherwise, that he secures, or arranges on their behalf personal loan facilities; that callers had a high chance of success of obtaining a loan; that CDRC's Financial Network, and/or The Financial Network, and/or SE Financial Network had assisted many persons to successfully obtain loans, or that the caller had been successful in obtaining approval for a credit card with a particular lending institution.
The interim orders effectively preclude Cedric Desmond Collinson from dealing with his assets or any monies obtained as a result of consumers calling the 1902 numbers and from receiving further monies from this source.
The next directions hearing is listed for 24 August 1998, Melbourne before Justice North.