Refund Home Loans franchisees are taking legal action against their parent company, claiming breach of contract.
A source within the Refund Home Loans franchise network said up to 50 franchisees have commenced legal action while some others are on the verge of leaving the franchise.
Franchisees are extremely unhappy with how their parent company have handled themselves and they feel let down.
According to the source, Refund Home Loans has not only failed to pay broker commissions, it has also failed to maintain their commitment to borrower refunds – being what the Refund Home Loans model is based on.
Late in October The Adviser was notified that while Refund Home Loans parent company would continue to pay commissions on loans settled from the time the administrator was appointed, it was trying to work out the logistics surrounding commissions on loans that were settled prior to the company entering administration.