Ludlow banned from consumer finance industry for life

Convicted fraudster Trevor Allan Ludlow has been banned indefinitely from working in the consumer finance industry.

Serving six years in jail for fraud, the former National Finance 2000 director has now received the first banning order issued under the Credit Contracts and Consumer Finance Act.

It means the 52-year-old can no longer set up, operate or work in the consumer finance industry.

The banning order was made in the North Shore District Court as part of a case taken by the Commerce Commission against Ludlow company Takarunga Management (Trading as Mortgage Rescue).

Justice Hinton said Ludlow “lacked the sills to be in the industry” and did not display the appropriate integrity and fair dealing.

Ludlow’s response to borrowers cancelling their contracts or disagreeing with him was “clearly unlawful and in the circumstances, outrageous” Justice Hinton said.

Mortgage Rescue offered homeowners in financial strife temporary finance to stave off mortgagee sales. They were encouraged to borrow more than was required to pay back their debt, so they could carry out renovations on their homes.

Commerce Commission competition manager Graham Gill said homeowners who had fallen on hard times and needed to refinance or face mortgagee sale were particularly vulnerable and had the right to full protection of the law.

The Commission prosecuted Mortgage Rescue and Ludlow under the Credit Contract and Consumer Finance Act and the Fair Trading Act in relation to consumer credit contracts entered into with two families.

Justice Hinton imposed fines of $29,000 on Mortgage Rescue and $1000 on Ludlow – reflecting the fact he was unable to earn income during his prison sentence.

Both parties were ordered to pay close to $24,000 in reparation to the borrowers.

Ludlow was the director and sole shareholder of National Finance, which owed investors more than $21 million when it collapsed in 2006.

He was found guilty of seven charges under the Crimes Act in July following an investigation by the Serious Fraud Office, and sentenced to six years in prison in the Auckland District Court in October.