KEY POINTS:
More than 130 investors in financial property specialist Blue Chip rallied in Auckland last night to organise into action groups in an attempt to resolve problems.
Barrister Paul Dale and author and television personality Olly Newland headed the meeting at a packed Greenlane hall and told the investors
of their options after a series of setbacks.
The mainly middle-aged investors expressed anger and helplessness about their situation.
Investors bought nearly 2000 properties from Blue Chip and its associates, often mortgaging a family home to buy an apartment or a townhouse.
Many were cold-called at home and signed up, tempted by rental guarantees, buy-back offers and the property management offer made to them.
But late last year rent stopped flowing, a problem Blue Chip has ascribed to data-entry errors and promised to rectify. Although investors were told they would get their money, many are still waiting. Blue Chip's executive director Mark Bryers now says it is impossible to meet its intended deadlines to pay rent arrears and has asked investors to be patient and more understanding.
Greta Norman of Epsom organised the meeting so people could work out what to do next. Mr Dale said they must organise into groups so those with similar problems could co-operate, discover what had happened to their money and work out how to get it back.
"You are fortunate this meeting has been called because there's a chance to start mobilising. There's strength in numbers," Mr Dale said. But he warned investors to be careful.
"The object is not to bring Blue Chip to its knees because most of you are concerned about your investment and getting your money back."
Mr Newland described Blue Chip as a very complex company.
"I've been in property for 47 years and I've looked at this model and tried to understand it and I can't see how it works," he said.
The majority of people indicated they were owed rent of about three months.
Mr Newland said the first action investors must take was to seize control of their properties from Blue Chip or its associates.
Investors must visit tenants and demand rent be paid directly to them rather than to the company.
Mr Newland also told investors to demand answers at Blue Chip's head office on level 21 of Qantas House on Queen St.
"Just ask nicely," he said.
BLUE CHIP
* Residential property investment business
* Has more than 3000 investors, mainly in Auckland
* People own nearly 2000 houses, apartments and flats
* Payment problems have caused them to mobilise
* Last night, they formed groups to take action