Resi is the latest lender to cop a reprimand from ASIC over advertising for its home loans.
The credit regulator announced yesterday that Resi had agreed to change online home loan advertising following concerns it was not adequately disclosing home loan comparison rates.
ASIC said Resi's comparison rate wasn't prominent enough. In one part of its website Resi included a table of other home loan products with interest rates but not comparison rates.
ASIC also said although Resi did include a required statutory warning about the accuracy of comparison rates, there was no clear reference to that warning for online consumers.
In its announcement, ASIC stated that other credit providers and broker should carefully review advertising practices and promotional materials to ensure compliance with the National Credit Act.
"Consistent disclosure of comparison rates in marketing material is a key tool for consumers trying to shop around and find the best rate on their home loan," ASIC commissioner Peter Kell said.
"ASIC will act when advertisements don't comply with the law," Kell added.
ASIC said that Resi has been cooperative in responding to ASIC's concerns about its comparison rate advertising and promptly corrected its website when requested by the regulator.
The regulator's concern over lender comparison rates recently came to light in a letter to the FBAA obtained by Australian Broker, which raised concerns such as:
Lenders not consistently advertising comparison rates along with annual percentage rates
Lenders ot advertising the rates prominently enough
Lenders failing to include an NCCP prescribed disclaimer about the accuracy of comparison rates
Lenders failing to properly calculate comparison rates
Regulator takes bank to task over credit card ads
Watchdog threatens banks on comparison rates