A mortgage lender has been forced to rename one of its loan products after failing to realise that ‘MoneySmart' has been traded marked by the Australian Securities and Investments Commission (ASIC).
ASIC claimed Mortgage House's promotional material for the product could have misled borrowers to believe the company had been endorsed by the regulator, or ASIC's MoneySmart website.
Mortgage House was the 13th business to be forced to change its advertising campaign as a result of ASIC's active monitoring of financial services and credit advertising in 2014.
Over the last 12 months ASIC has collected penalties from three businesses — Esuperfund Pty Ltd ($30,600), Your Super Accountant ($2040) and Super Help ($10,200) — in relation to misleading advertising claims regarding self-managed super fund (SMSF) start-up fees.
While Industry Super Fund, Media Super received a $10,200 fine in relation to "potentially misleading" advertising claims made in a fact sheet sent to all the fund's members comparing the costs and benefits of SMSFs and its fund.
Meanwhile, NAB was forced to correct misleading claims made in advertisements published in Fairfax Media publications regarding its home loan rate, while NAB's UBank paid $40,800 in relation to four infringement notices relating to "potentially misleading advertising of a UBank home load product", which was promoted with an offer of a $2014 EFTPOS gift card.
ASIC also accepted an enforceable undertaking from Gold Coast financial planning company, Equanimity Concepts Pty Ltd, to appoint an independent consultant to review its compliance with consumer protection credit laws and proper advertising processes, after concerns were raised over misleading advertising of financing options for home loads.
The five other businesses to be censured by ASIC we:
- Make it Mine Finance Pty Ltd
- Virgin Money
- Wealth Within Ltd
- Paid International Ltd
- Jeremy (WA) Pty Ltd
