A Gold Coast-based credit finance and property management company has entered into an enforceable undertaking with ASIC over misleading advertising of financing options for home loans.
From January 2012 to July 2014, Equanimity Concepts advertised that they could help consumers pay off their home loan in a very short amount of time. ASIC cites one example which read “Pay off your 25 year home loan in less than 5 years.”
ASIC chairman, Peter Kell said that Equanimity’s compliance processes in terms of its advertising were unsatisfactory and may have breached consumer protection credit laws.
“The need for credit finance advertising to be accurate cannot be stressed enough as anything misleading can create unrealistic expectations that may lead to poor financial decisions and, ultimately, consumers could end up in a dangerous debt spiral.
“Advertising of this nature will not be tolerated and ASIC will take swift action when confronted with false claims.”
Under the EU, Equanimity must appoint an independent consultant to review its compliance with consumer protection credit laws and proper advertising processes, and develop a plan to rectify any deficiencies identified by the expert.