NAB rapped for false advertising
National Australia Bank (NAB) has been ordered to amend claims on its home loan rate advertisements, as the Australian Securities and Investments Commission (ASIC) cracks down on misleading financial advertisements.
The issue was around NAB's promotional wraparound that appeared in The Sydney Morning Herald and The Age earlier this month, which claimed the bank "had the lowest standard variable rate for more than five years'.
This was false as NAB neglected to mention something along the lines of "of the four major banks", as NAB has not had the lowest standard variable rate over the past five years compared to banks outside the big four.
ASIC deputy chairman Peter Kell said firms must make sure financial advertisements do not mislead consumers.
"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," he said.
NAB will run the modified advertisements in tomorrow's (28 October) issues of the two papers.
AUTHOR
Malavika Santhebennur
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
