'Pay off your home loan in 5 years': finance company in hot water for misleading advertisements

by Julia Corderoy12 Nov 2014
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.



  • by Tim H 12/11/2014 10:26:06 AM

    A question for ASIC. How can major lenders who do not offer capitalised LMI promote on national television advertisements saying you only need 5% deposit to buy a home when any good broker knows that aside from the LMI the borrower will also require funds for solicitors, government registration fees, lender fees, property changeover costs, removalist fees, insurance etc.
    ASIC is right to take to task Equanimity for their misleading advertising but isn't it also wrong to mislead first home buyers to think that it is as easy as just having a 5% deposit to get a home.

  • by Stumped... 12/11/2014 1:48:47 PM

    Lets not forget the Developers/Marketers who somehow manage to double the GreatStartGrant for FHBs & hey presto....not deposit needed at all!!