A Melbourne-based Chinese mortgage broking firm has agreed to change its advertising following concerns raised by ASIC.
Elite Mortgage Brokers agreed to change statements on its website and in print advertisements. ASIC said it was concerned that statements - made in Chinese - were likely to mislead or deceive. The statements ASIC flagged were:
- 100% success rate
- pre-approvals within 15 minutes
- Melbourne’s largest Chinese mortgage broker; and
- matching of all banks’ interest rates.
ASIC said the adverisements claiming a 100% success rate were likely to be misleading, given that lenders and brokers subject to responsible lending obligations cannot claim that all applicants will receive credit. The regulator said other statements were likely to be misleading or deceptive as the brokerage could not properly substantiate the claims.
"All representations made in advertising of credit-related products, including representations regarding the size of a business or the nature of services provided, must be accurate and able to be substantiated to avoid consumers being misled. This extends to ensuring consumers from non-English speaking backgrounds are not misled or deceived by advertising in a foreign language," ASIC deputy chairman Peter Kell said.
"ASIC monitors all forms of advertising and will continue to monitor advertising targeted at non-English speaking consumers. Where necessary, ASIC will take enforcement action."