A bitter dispute is brewing between 26 RAMS Home Loans franchisees and owner Westpac, after a number of complaints were taken to the Australian Competition and Consumer Commission (ACCC).
The franchisees claim that Westpac made false representations on available products, trailing commissions, retail space, working capital requirements and the saleability of the franchises.
The franchisees also allege that the bank pressured them into opening stores with scant regard for their financial viability, The Sydney Morning Herald reported.
The legal wrangling, which involves almost half of RAMS' 60 franchisees, comes less than six months after Westpac acquired the financially reeling company for the bargain basement price of $140m.
Are you a disgruntled RAMS franchisee taking part in the ACCC action? Get in touch by contacting [email protected]
