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ASIC has warned about “dangerous debt spirals” after slapping a Gold-Coast firm with a $30,600 fine for “false or misleading advertising”.
From January 2012 to July 2014, Equanimity Concepts advertised financing options for home loans on its website, YouTube, in in-flight magazines for Qantas, Jetstar and Virgin, as well as police journals, according to the regulator.
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ASIC was concerned the company “could have misled consumers into thinking that if they borrowed with Equanimity, they would be helped to repay their home loan in a reduced time frame without incurring further debt”.
Equanimity, which is a financial planning and property management firm, entered into an enforceable undertaking with ASIC in November 2014 following an investigation into the ads.
As a result of the investigation, ASIC issued the company with three infringement notices – each one imposing a penalty of $10,200.
ASIC deputy chairman Peter Kell said the need for accurate credit finance advertising cannot be stressed enough, as anything misleading “can create unrealistic expectations that may lead to poor financial decisions and, ultimately, consumers could end up in a dangerous debt spiral”.
[Related: ASIC sends $19m message to brokers]
