ACCC action against Two-Tier Marketing Schemes
13 March 2003
The Bank is mentioned in media reports in connection with a Federal Court action being brought by the ACCC in Brisbane against the operators of two-tier investment property marketing schemes.
The Bank’s position is as follows:
The Bank is defending the ACCC action vigorously.
- Bank did not play a significant role in loans generated by seminar marketing and introduced measures to alert property buyers to the possible pitfalls of such schemes.
- The Bank has issued firm guidelines for applicants seeking finance for investment properties located outside of their home region.
- In fact, it is now mandatory for all applicants to provide written confirmation that they have taken the necessary steps to satisfy themselves that the purchase price of the investment property represents fair local market value.
- The Bank also strongly recommends that out-of-town investors seek independent and specific professional advice in respect of the local market value of the proposed investment property.