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NAB will be forced to run clarification advertisements following ASIC concerns about “misleading home loan claims”.
ASIC announced today that NAB would be forced to correct ads published earlier this month in the Sydney Morning Herald and The Age that claimed NAB “had the lowest standard variable rate for more than five years”.
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The regulator said the claim was false because NAB failed to mention that it was referring only to the big four banks.
“Outside the major banks, NAB has not had the lowest standard variable rate over the past five years,” according to ASIC.
ASIC deputy chairman Peter Kell said it is important that financial promotions are fair, clear and not misleading so that consumers are able to make informed decisions.
“Buying a home can be a very big step in someone’s life and claims about the cost of a home loan can dramatically impact that decision, so it is vital that these are accurate and truthful,” he said.
NAB will run advertisements in tomorrow’s issues of the Sydney Morning Herald and The Age to correct the record.
ASIC said it had launched a “crackdown” against “false and misleading financial promotions”.
It comes after the MFAA recently warned brokers about the “widespread industry practice” of “false home loan advertising”.
[Related: ASIC fines lender for ‘potentially misleading’ ads]
