Adele Ferguson

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Mortgage Choice is facing a revolt from disgruntled franchisees

ABC 730 JUNE 2018

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https://www.smh.com.au/business/banking-and-finance/i-feel-like-a-caged-animal-life-inside-mortgage-broking-giant-20180604-p4zjeo.html

https://www.smh.com.au/business/banking-and-finance/desperate-people-do-desperate-things-loan-fraud-alleged-at-giant-20180605-p4zjm6.html

ABC 730

https://www.abc.net.au/7.30/mortgage-choice-is-facing-a-revolt-from/9837938

The pressure on franchisees to increase monthly lending coupled with a reduction in their trailing commissions were forcing franchisees to leave with nothing or press vulnerable consumers to increase their borrowings.

Almost half the franchisees (173) were looking into setting up a legal fund to fight for their businesses.

The fall out was immediate. The share price dropped by XX and the business capitulated by changing the model to offer fairer terms and gave assistance to struggling firms.

The 7:30 episode showed the deep emotional damage franchisees have suffered from. Our investigation involved extensive research and confidential informants who took great personal risks to help make this story possible.