ASIC cracks down on debt firms’ false advertising
The Australian Securities and Investments Commission (ASIC) has issued an infringement notice to a debt resolution firm and ordered two others to remove misleading advertising as part of its crackdown on false advertising by debt resolution firms.
Capital Debt Solutions Australia Pty Ltd has been issued a $10,800 infringement notice, while Debt Assist Aust Pty Ltd and Bankruptcy Experts Pty Ltd have removed misleading statements online.
ASIC raised concerns that Capital Debt Solutions had false claims on its website stating the firm was trusted and recommended by over 6,000 Australians. ASIC said there was no evidence for the figure and deemed the advertising misleading.
The firm and Debt Assist Aust have also removed false online statements after ASIC found their debt agreements were not “government approved”.
The regulator also found debt solutions firm, Bankruptcy Experts had testimonials on its website that were unable to be substantiated.
ASIC deputy chairman, Peter Kell, said misleading advertising was damaging for consumers.
“'Firms must ensure their marketing materials and promotional statements are based on fact,” he said.
“Recommendations and statements, like 'government approved' can have a strong influence when vulnerable consumers in financial hardship are seeking help with their debts.”
AUTHOR
Hope William-Smith
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
