Powered by MOMENTUM MEDIA

Property investors caught up in alleged ‘unconscionable conduct’ case

tax-and-legal-advice
1 minute read

Property investors caught up in alleged ‘unconscionable conduct’ case

by Sasha Karen 29 April 2019 1 minute read

A business focused on servicing investments under the National Rental Affordability Scheme (NRAS) has had proceedings instituted against it by the ACCC for allegedly making false or misleading statements to property investors.

ACCC
April 29, 2019

Quantum Housing Group has been singled out by the ACCC on its services relating to the NRAS for allegedly misleading investors.

Its director, Cheryl Howe, is alleged to be involved, according the ACCC.

The ACCC alleged that from February 2017 to July 2018, Quantum pressured property investors involved in the NRAS to end their existing relationship with their current property manager and instead use property managers recommended or approved by Quantum, which had commercial ties to the service.

According to the Concise Statement released by the ACCC, three out of four of the businesses Quantum recommended to source property managers from did not have the commercial ties to Quantum disclosed.

Advertisement
Advertisement

Quantum also allegedly made false or misleading representations to both investors and property managers about its own rights and the potential losses investors could see if Quantum’s approved property managers were not used.

The business’ guidelines to investors and property managers about how they could become approved by Quantum required a $10,000 deposit to Quantum per NRAS property managed.

The ACCC, however, alleged that Quantum did not receive security deposits from their recommended property managers.

“Payment of the $10,000 per property would mean that managing any NRAS property would have been completely unviable for many property managers,” ACCC Chair Rod Sims said.

“Quantum’s alleged conduct meant that investors could not select a property manager who best suited their needs and many property managers suffered a significant loss of business as a result.”

The ACCC is seeking pecuniary penalties, injunctions, declarations and banning orders against Ms Howe.

Property investors caught up in alleged ‘unconscionable conduct’ case
ACCC
spi logo

About the author

Sasha Karen

... Read more

From the web

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.