Payday lender changes advertising
Payday lender Nimble Australia has changed its advertising following regulator concerns it was potentially misleading.
Nimble Australia, previously known as Cash Doctors, made statements both on its website and in the press that its credit contracts were ‘short term'.
However, the Australian Securities and Investments Commission (ASIC) said the statements did not clearly explain that the Nimble product was a continuing credit contract with an indefinite term.
"Advertising must give clear, accurate and balanced messages about the features and benefits associated with credit products so consumers have realistic expectations and can make informed decisions," said ASIC Deputy Chairman Peter Kell.
The regulator was also concerned that statements Nimble made comparing its product with a credit card were inaccurate.
Its website stated that a loan could not be redrawn unless it had been paid in full, and that Nimble's products were different from credit cards in that respect.
As a result of ASIC concerns, Nimble has removed references to ‘short term' and comparisons with other credit products from its website and will stop using continuing credit contracts at the end of June 2013.
ASIC has recently cracked down on a number of credit product providers and their advertising campaigns, including Fair Finance, GE Money, RAMS and HSBC, having released guidance on advertising in November last year.
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