Jailed fraudster Trevor Allan Ludlow has been banned from working in the consumer finance industry after trying to rip off desperate homeowners.
Ludlow, 52, the former director of failed car finance company National Finance, was sentenced in October to six years in jail for his part in a $3.5 million fraud.
He was convicted in July of seven charges brought by the Serious Fraud Office relating to theft as a person in a special relationship and false accounting.
North Shore District Court has now banned him from setting up, operating or working in the consumer finance industry after another of his companies was found to have been offering credit contracts which targeted vulnerable people.
The Commerce Commission, which brought the case, said this was the first order of its kind.
Ludlow was the director and "sole decision maker'' of Takarunga Management Limited, trading as Mortgage Rescue, which offered homeowners in financial strife temporary finance to stave off mortgagee sales, the commission said.
The company encouraged homeowners to borrow more than was required to pay their arrears so they could carry out renovations to their homes.
In two cases, borrowers cancelled the contract the day after they entered into it - as they were legally entitled to do - but Mortgage Rescue charged a $5000 cancellation fee and a $1500 legal fee, when it had only paid $675 for legal services.
Both the company and Ludlow were convicted for charging an unreasonable cancellation fee and the company was convicted for not passing on the legal fee at cost.
Judge Laurie Hinton said Ludlow's response to borrowers cancelling their contracts was "clearly unlawful and in the circumstances, outrageous'', the commission reported.
He said Ludlow lacked the skills and did not display the integrity needed to be in the industry.
Judge Hinton imposed fines of $29,000 on Mortgage Rescue and $1000 on Ludlow, a reflection of the fact that he was unable to earn an income while in prison.
Both Mortgage Rescue and Ludlow were also ordered to pay reparation to the borrowers of nearly $24,000.
He can start paying once he is released from prison.
