Khad Pty Ltd, trading as Professionals Edge Hill - s.87B undertaking

Khad Pty Ltd, trading as Professionals Edge Hill operates a real estate agency in Cairns. In early 2000, the real estate agency sent out two letters to ex-tenants requesting payment for alleged debts. The letters also advised tenants that their name would be placed on a tenant information database. The letter made a number of misrepresentations about the effect of being listed on the database and specifically:

• that the database was worldwide whereas it wasn't;
• that the listing would affect the tenant's credit rating whereas the listing had no effect on the credit rating; and
• that the listing would result in future tenancy applications being denied through any other agency whereas not all real estate agencies use the database and in any event, the real estate agencies are able to choose who they deal with regardless of the listing.

The Commission was concerned that in sending the letters, Mr Khad had made false or misleading representations and may have engaged in undue harassment or coercion in relation to the payment of goods and services.

Khad has provided undertakings which include:

• admissions;
• undertakings not to repeat the misrepresentations;
• corrective letters of apology to the two tenants; and
• the implementation of a trade practices compliance program.