CHOICE campaign sparks lender criticism

Staff Reporter

One of Australia's credit unions has voiced its concerns over the potential damage the consumer watchdog CHOICE’s ‘Move Your Money’ campaign could have for borrowers.

Earlier this week, CHOICE launched the campaign, which encourages Australians to move their money out of the big four banks.

The new campaign comes on the back of a CHOICE investigation which found only one in 18 branches are providing consumers with Home Loan Fact sheets.

CHOICE director of campaigns and communications Christopher Zinn said the new campaign would help stimulate greater competition in the mortgage lending space.

But while the campaign is expected to promote the virtues of Australia’s smaller lenders, not everyone is sold on the idea.

Speaking to The Adviser, Gateway Credit Union’s chief executive Paul Thomas said while he supports the “idea in theory”, in reality, he doesn’t think the campaign is a good thing for the industry.

“The campaign is encouraging home owners to review their options and see if there is a better priced deal out there for them,” he said.

“At the end of the day, borrowers should not pick a home loan or another lending product based solely on price. While one lender may be the cheapest, do they offer the right support?”

“And will the best priced product suit the consumers’ needs?

“Ultimately, just because a product is better priced, doesn’t make it the best option.”

Mr Thomas said consumers looking at joining the campaign should do so “with caution”.

“Just make sure you go into anything with your eyes open. Make sure whatever deal is recommended to you, is the best deal for you,” he said.