3 Sep 2009

Commerce Commission monitors home rescue group

7:52 pm on 3 September 2009

The Commerce Commission is monitoring a group in Hamilton which claims to be able to stop mortgagee sales.

Home Rescue Trust was warned by the commission in June that its claims are wrong and it risks breaching the Fair Trading Act.

Home Rescue claims to be a charitable trust and its website says it is able to prevent mortgagee sales and bankruptcy.

But the Commerce Commission says its claims are wrong and the group is not registered with the Companies Office or the Charities Commission.

Home Rescue charge customers 1% of the home's value and 1% of the mortgage value.

Undischarged bankrupt and Home Rescue trustee Brendon Holmes says it is not fraudulent or a scam. He says their claims are legitimate and are backed up by case law.

However, the Commerce Commission says Home Rescue Trust only delays mortgagee sales by placing a caveat against the title of the land.

The commission says it will continue to monitor the situation and may take further action.

Police in Hamilton say they have not received any complaints.