In 2004 the ACCC alleged Wizard
Home Loans Pty Ltd breached section 52 of the Trade Practices 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
The ACCC further alleged that annual remuneration figures provided to the managers were likely to mislead.
The ACCC also took representative action seeking compensation on
behalf of an individual who responded to an advertisement and accepted
one of the positions.
Wizard Home Loans Pty Ltd
has now agreed to compensate a candidate for a Mobile Lending Manager position after
admitting that it engaged in misleading conduct. The Federal Court has ordered Wizard, by consent, to compensate Mr
David Cassar who responded to an advertisement and accepted the
Wizard has admitted that it breached section 52 of the Trade Practices Act 1974
by making representations to Mr Cassar, in an interview, about a level
of commission that a good performing mobile lending manager may earn
when there were not reasonable grounds to do so.
Wizard has reviewed
its recruitment practices. The court proceeding settlement provides for:
- a declaration that Wizard misled Mr Cassar in an interview for a position as a mobile lending manager with Wizard
- a compensation order for Wizard to pay a confidential sum to Mr Cassar representing lost earning opportunity, and
In addition Wizard has agreed to give a section 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 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 mobile 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, and
- 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 this undertaking, Wizard will implement and maintain a
trade practices compliance program for a period of three years designed
to make Wizard personnel aware of their responsibilities and
obligations with respect to section 52 of the Act in connection with
the recruitment of mobile lending managers.