Finance broker fined by ASIC

Staff Reporter Thursday, 6 Feb 2014 1 minute read

ASIC has issued a warning about misleading advertising after fining a Western Australian finance broker more than $20,000.

Jeremy Pty Ltd has paid $20,400 in penalties for marketing representations that offered "guaranteed car finance" to consumers.

The representations were published on websites operated by the company at guaranteedcarfinance.com.au and yes-loans.com.au and using the Google Adwords service which linked to the company's website at getapproved.com.au.

In a statement released yesterday, ASIC said it was concerned the representations were false or misleading under national consumer law because an unconditional guarantee that finance can be provided is inconsistent with responsible lending laws.

ASIC said responsible lending prohibits lenders from entering into unsuitable credit contracts with consumers. This means that loans cannot be 'guaranteed' in all circumstances as not all consumers would have reasonable means to meet loan repayments.

ASIC deputy chairman Peter Kell yesterday warned, "ASIC will continue to monitor both traditional and non-traditional media to ensure lenders and finance brokers are complying with the law in their marketing to consumers. We will take action where we identify ads that may mislead consumers."