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Refund franchisees at breaking point

by Staff Reporter11 minute read
The Adviser

Exactly four months after Refund announced it was going into voluntary administration, franchisees are still without any trailing commission.

According to several brokers, who wish to remain anonymous, despite confirmation from the administrator SV Partners that brokers will receive all outstanding commissions in full, this promise is yet to be delivered on.

This means brokers have gone without trail for at least four months.

At the end of last year, SV Partners' David Stimpson told The Adviser that all commissions had been paid since the administrator's appointment.


"There are still some brokers that have not been paid their commissions from prior to my appointment," he said at the time.

SV Partners' inability to complete a clean and quick sale of the business, despite ongoing assurances from the company that a sale was imminent, is holding back brokers' commission payments from prior to the administrator's appointment.

In December last year, Mr Stimpson told The Adviser that after two months in administration, a sale of Refund Home Loans was imminent.

This sale is yet to materialise.

The Adviser can reveal that there are at least two groups considering a purchase of the business, yet for one reason or another neither of the offers have been accepted by the administrator.

One group, who wishes to remain anonymous, contacted The Adviser to say their offer was largely being ignored by the administrator.

Whatever happens from here on in, it is fair to say that any sale of the business could not be considered "clean and quick" as the administrator suggested it would be when Refund went into administration in October 2011.

The Adviser has continually contacted SV Partners for an update on the current proceedings, however, these calls have gone unanswered.

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