Home Funding Group faces Commerce Commission action for allegedly claiming it was offering a savings scheme when clients were instead paying for mortgage brokering and financial coaching

Home Funding Group faces Commerce Commission action for allegedly claiming it was offering a savings scheme when clients were instead paying for mortgage brokering and financial coaching

The Commerce Commission has filed charges against the Home Funding Group (HFG) and its sole director Luke Atkins for allegedly breaching the Fair Trading Act.

The Commission alleges the company misrepresented its services and claimed it was offering clients a savings scheme which would help them save a deposit for a house. But according to the Commission, the clients were instead paying for mortgage brokering and financial coaching.

The Commission has also charged Atkins and HFG with failing to provide information and documents. HFG has been targeting prospective home buyers in Auckland and Wellington.

The Commission says HFG told customers that the fees they paid would be reimbursed when they purchased a home or at the end of the contract with HFG.

As part of the legal action the Commission wants HFG to repay some of the fees paid by its clients.

HFG and Atkins will next appear in court on April 17 at the Waitakere District Court.

Atkins is also listed as the previous sole director of a company called the Welcome Home Foundation which was also subject to complaints over its financial coaching practices.

Concerns were also raised about the similarity of its name with the government funded Welcome Home Loan scheme for first home buyers and it changed its name to the Home Funding Group in 2014. It is currently being struck off the Companies Office register.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.