A major bank has agreed to correct its home loan advertising in light of concerns from ASIC.
NAB will run advertisements in The Sydney Morning Herald and The Age to correct claims made in previous ads that it had the lowest standard variable rate for more than five years. The bank originally made the claims earlier this month in a promotional wraparound published by the newspapers.
ASIC said the claim was false, as NAB failed to qualify that it had the lowest rate of the four majors. Outside of the found majors, ASIC argued NAB had not had the lowest standard variable rate over the past five years.
"It is important that all firms ensure financial promotions are fair, clear and not misleading so that consumers are able to make informed decisions," ASIC deputy chair
Peter Kell said. "Buying a home can be a very big step in someone’s life and claims about the cost of a home loan can dramatically impact that decision, so it is vital that these are accurate and truthful."
NAB has previously been in trouble with ASIC for misleading advertisements. Last month, the major bank was slapped with $40,800 in penalties after ASIC issued four infringement notices for potentially misleading advertisements of a UBank home loan product.
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