Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

ASIC targets brokerages for misleading Chinese buyers

chinese flag  x

chinese flag  x
Huntley Mitchell 1 minute read

An ASIC review of advertising targeting Chinese-speaking home buyers has prompted four mortgage broking firms to change their home loan advertising.

The Sydney brokerages that published the misleading advertising are Ace Mortgage Market (located in Parramatta), Aus Realty Group (located in Hurstville), Apex Finance & Mortgage (located in Burwood) and Trans Australia Mortgage Finance (located in Burwood and Chatswood).

ASIC said the range of concerns contained in the advertisements targeting Chinese-speaking home buyers included representations in Chinese such as ‘lowest fixed rate’ and ‘no proof of income’, "which may be false and misleading statements, or indicate a breach of the responsible lending obligations".

The regulator said some of the advertisements also had a heavy reliance on disclaimers, such as ‘terms and conditions apply’, that did not explain qualifying terms and conditions.

"Also, promoters tended to advertise benefits in Chinese language, but stated the disclaimers and qualifications in English, when the advertising was aimed at non-English-speaking consumers," ASIC said.

Other concerns with the advertisements included failure to disclose the required comparison rate when quoting an annual percentage interest rate, failure to disclose the required warning about the accuracy of the comparison rates, and failure by their promoters to regularly review the advertisements to ensure accuracy and compliance with the law.

ASIC deputy chair Peter Kell emphasised that The Australian Consumer Law applies to all advertising, including advertising in foreign languages.

"Consumers who are unable to understand written English are likely to be more reliant on advertising in their native language when in need of a financial product," he said.

Advertisement
Advertisement

PROMOTED FEATURES


"Promoters should ensure that their advertising is up to date and complies with the law. If the majority of the advertising is in a foreign language, the warnings, disclaimers or qualifications should be prominently disclosed in the same advertising and explained in that same language."

ASIC targets brokerages for misleading Chinese buyers
chinese flag  x
TheAdviser logo
chinese flag  x

 

more from the adviser
meeting room Aggregator heads to consult with government over credit changes

Several leaders of aggregation groups have noted the government...

CBA ING ta CBA, ING slash variable rates ahead of touted RBA move

The lenders have reduced variable mortgage rates for both owner-o...

closed sign Government announces small-business insolvency reforms

The federal government has announced a range of small-business in...

FROM THE WEB