ASIC's wrath falls on misleading rates

by Caroline Dann20 Aug 2012

ASIC has scolded two non-bank lenders of personal loans for 'misleading' consumers over actual interest rates.

Both GE Money and Cash Today Pty Ltd were forced to change their online advertising after ASIC feared the fine print conflicted with the advertised message.
GE Money claimed loans from $3,000 would incur interest rates from 13.99%, although the fine print specified that particular interest rate was only available on loans over $20k.
Meanwhile, Cash Today Pty Ltd was forced to change its advertising after ASIC found it did not disclose rates on certain low value short-term loans.
"Advertisements should give clear and accurate information to ensure the overall effect creates realistic expectations about the cost of a credit product," said ASIC commissioner Peter Kell.

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  • by Tom 20/08/2012 10:12:27 AM

    Very misleading indeed.

  • by Country Broker 20/08/2012 10:27:16 AM

    great to see ASIC doing this if teh advertising does not comply it does not comply

  • by ozboy 20/08/2012 10:34:08 AM

    Agree but have to ask what did ASIC do? Just get them to amend the ad? Hardly a deterrent. I think a substantial fine would have sent a clear message.