An Auckland company has been fined $400,000 for a "carefully crafted scheme" that targeted "vulnerable" low-income home buyers.
Home Funding Group Limited (HFG), which is currently in liquidation, was convicted on two charges under the Fair Trading Act 1986 in the Auckland District Court in January.
HFG offered services to prospective home buyers who found it difficult to save for a deposit or qualify for bank finance.
It claimed to operate a savings scheme which could assist customers to purchase a home with a deposit as low as 5 per cent.
However, customers' payments were not paid into or treated as being in any form of savings scheme.