The MFAA has praised a proposed ACCC crackdown on comparison sites.
ACCC chairman Rod Sims last week said the competition watchdog would crack down on misleading comparison sites for services such as loans, credit cards, insurance, flights and utilities. Sims called the sites "an important marketing tool for business", but claimed they could sometimes "mislead consumers in significant ways".
MFAA CEO Phil Naylor has welcomed the move, saying comparison sites are not a substitute for brokers.
“While comparison sites can be a useful tool in assembling information about home loans, there is no substitute for potential borrowers visiting an MFAA credit adviser to receive detailed advice about all the aspects and considerations in relation to the most appropriate finance for them," Naylor said.
Naylor claimed a mere comparison of interest rates was inadequate to address borrowers' needs.
“There is far more required in analysing what is the most appropriate home loan and other credit product for a borrower than merely comparing interest rates on a comparison website," Naylor said.
Consumer group Choice has also welcomed the crackdown, with CEO Alan Kirkland telling Fairfax that comparison sites often don't offer consumers the best options.
"That's the way they make money; they [usually] only list businesses that pay them and they often rank results on how much businesses are willing to pay rather than what's the best option," he told Fairfax.