Name to blame as Australia mortgage firm abused

SYDNEY, March 10 (Reuters) - An Australian mortgage firm has received threatening phone calls, abuse and even a letter containing a white powder in recent weeks -- all because its name is similar to a much bigger troubled finance company.

Australian Finance Group, a privately held mortgage broker in the western city of Perth, trades as AFG, the same letters as the stock symbol for Allco Finance Group (AFG.AX: Quote, Profile, Research, Stock Buzz), whose market value has shrunk almost 90 percent amid a global credit crunch on concerns over its ability to repay debt.

"While we really do sympathise with Allco investors, we're having to cope with a lot of internal disruption and unpleasantness from misdirected hate-calls," AFG Director Kevin Matthews said in a statement.

Last week, an envelope containing a white powder was sent to AFG's headquarters, disrupting operations while police cordoned off the reception area and tested the powder.

That followed weeks of threatening phone calls to AFG offices, hostile letters and other disruptions, including company cars having their tyres let down, the statement said.

Allco Finance Group has shed assets, its banks have called in loans and its directors have stepped down as it struggles to repay debts. Its troubles have focused attention on other companies believed to have high debt levels.

"'What's in a name?' the Bard famously wrote in Romeo and Juliet. 'That which we call a rose, by any other name would smell as sweet.' The challenge for Australian Finance Group is to ensure its acronym AFG continues to smell sweet," Matthews said, referring to a play by William Shakespeare.

"All readers and investors please note: AFG is not in any way related to Allco Finance Group." (Reporting by Jonathan Standing; Editing by Alex Richardson)