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ISCOVER
Staff Reporter
RESI has been asked to change its online home loan advertising after ASIC raised concerns about the content.
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According to a statement from ASIC, RESI failed to “adequately disclose the comparison rate on its home loans”.
The National Consumer Credit Protection Act 2009 requires any advertising of loan interest rates to include a 'comparison rate' in equal prominence.
The comparison rate is a single figure that includes both the interest cost and the other major fees and charges for a loan, making it easier for consumers to shop around and compare loans.
ASIC was concerned that the ad’s comparison rate wasn’t prominent enough and although the required statutory warning about the accuracy of the comparison rate was given, there was no clear reference to that warning.
In a separate part of the website RESI included a table of other home loan products together with their interest rates but did not include any comparison rates.
ASIC strongly encourages credit providers and brokers to carefully review advertising practices and all promotional materials to ensure compliance with the National Credit Act as well as ASIC’s expectations.
“Consistent disclosure of comparison rates in marketing material is a key tool for consumers trying to shop around and find the best rate on their home loan, and ASIC is closely monitoring this area,” ASIC commissioner Peter Kell said.
