Issue Date:  -  Tuesday, 23 May 2000

Warning - Home Equity Associates

Commissioner for Fair Trading, Patrick Walker, today warned consumers to be wary of claims made about a cheap home loan scheme promoted by Home Equity Associates.

Home Equity Associates is a business name registered to the Western Australian Institute of Cooperation Inc (WAIC), an association incorporated in Western Australia.

The promoter of the loan scheme presents itself as an organisation that is committed to helping low income earners, discharged bankrupts, retirees, pensioners, single parent families and the elderly.

In July 1999 Victoria’s Office of Fair Trading reported that the success of the scheme was dependent upon other members joining, and that existing members were being ’urged’ to encourage others to participate.

To secure a loan of $120,000 several thousand people would have to join and pay their membership fees. The Victorian Office of Fair Trading warned that the whole nature of the scheme was fraught with risks.

"Until recently, Home Equity Associates has not actively promoted the scheme in Western Australia," Mr Walker said.

"I am particularly concerned about a statement in its literature which implies that the Ministry of Fair Trading in Western Australia has approved of the scheme in some way"

"The Ministry of Fair Trading has neither approved the scheme nor the organisation," Mr Walker said.

To state or imply Ministry approval or endorsement is an offence under the Fair Trading Act. That matter is now being investigated.

Media contact:

Neil Stanbury
Tel: (08) 9282 0613
Mobile: 0407 447 304