A lender has become the second company to be targeted by ASIC over misleading online advertisements in the past fortnight.
After the industry watchdog raised concerns that home loan interest rates advertised on the MyRate website were likely to mislead consumers, the lender elected to amend its homepage.
ASIC became concerned that the website gave the impression the advertised rate for a variable home loan applied both to existing and new loans when, in fact, it only applied to new home loans.
According to ASIC, some customers with existing variable rate home loans were charged interest over the advertised rate.
Since the issue was raised by ASIC, MyRate has made changes to its website to prominently state on the home page that the advertised rate only applies to new loans.
MyRate has also agreed to write to all affected customers to confirm the advertised rate only applies to new loans.
The story comes less than a fortnight after Mortgage Choice was fined $30,600 for claiming to have saved customers on average $10,000 over five years when these were actually savings projections.
ASIC deputy chairman Peter Kell said the regulator expects credit licensees to provide clear and accurate information to consumers in their advertising.
“Where advertising promotes a particular product feature, such as a low interest rate for a loan, the credit provider needs to make sure that any qualifications about how that rate applies are clear and that the information is not misleading in any way,” he said.
MyRate will provide its internal dispute resolution contact details and customers are encouraged to contact MyRate if they have any concerns that they may have been misled about the interest rate on their loan, or have any other questions about their loan.