Mortgage broking house Mortgage Choice has paid more than $30,000 in fines over false advertising.
The Australian Securities and Investments Commission (ASIC) has issued three separate infringement notices to Mortgage Choice — one for representations made in the television advertisements and two for claims made on the websites — each carrying a penalty of $10,200.
The advertisements said that Mortgage Choice had refinanced numerous home loans and on average saved its customers $10,000 over five years.
However, the figure represented projected savings based on calculations from a sample number of 300 refinancing customers over a six-month period.
No customer had achieved a saving of $10,000 over five years at the time of the advertisement, ASIC said.
"Advertising plays a crucial role in the decisions consumers make, and any claims made about savings a consumer might make need to be accurate and supported by evidence," said ASIC Deputy Chairman, Peter Kell.
"ASIC will continue to act in instances where advertisements contain representations about a product that are false or misleading."
Kell added ASIC would continue to monitor the advertising of financial products.
However, the regulator pointed out the payment of an infringement notice was not an admission of a contravention of the Australian Securities and Investment Commission Act 2001 consumer protection provisions.
"ASIC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws."
