BFCSA: ASIC & Peter Kell: a $30k fine for Mortgage Choice Misleading Ads but nothing for Consumer victims

Mortgage Choice fined over false savings claims

November 28, 2013 - 1:35PM
Clancy Yeates

Banking reporter  SMH

View more articles from Clancy Yeates

 This email address is being protected from spambots. You need JavaScript enabled to view it." style="margin: 0px; padding: 0px; border: 0px; font-weight: inherit; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #484848;">Email Clancy

Mortgage Choice has been fined for false advertising, after it wrongly claimed customers had saved an average of $10,000 over five years by refinancing their home loans.

The Australian Securities and Investments Commission today said it had taken exception to television advertisements from 2012 that said customers had saved an average of ''$10,000 over five years.''

Rather than representing real savings by customers, the claim was based on calculations relating to a group of 300 refinancing customers over a six month period, ASIC said.

''No savings of $10,000 over five years had been achieved by any customer at the time of the advertisement,'' the watchdog said.

It fined the broker $30,600 for the infringements.

The chief executive of Mortgage Choice, Michael Russell, said the company took its responsibilities to advertise in line with regulations ''very seriously'' and it would follow the watchdog's guidance in the future.

"Mortgage Choice has fully co-operated with ASIC during their investigation and while we are disappointed with the end result, the matter has now been dealt with and we consider it to be finalised," Mr Russell said in a statement.

The deputy chairman of ASIC, Peter Kell, said the regulator would continue take action against financial advertising that it judged to be false or misleading.

''Advertising plays a crucial role in the decisions consumers make, and any claims made about savings a consumer might make need to be accurate and supported by evidence,'' Mr Kell said in a statement.

Read more:

ASIC did the same with Henry Kaye in 2003.  Fined him for false advertising but did nothing to assist the consumers who had been misled. ASIC asked Henry to sign an EU.   Kell admits Consumers have been misled so where is the remedy for them?  Does ASIC hand over the paltry sum of the $30,000 fine to the Mortgage Choice victims who relied upon the ad?  Not on your Nelly.  Just another infringement notice that ASIC loves doing and Peter is rewarded for bringing in another $30,000 smackeroos into the ASIC benevolent funds...............................................

CONSUMERS IGNORED ONCE AGAIN     This email address is being protected from spambots. You need JavaScript enabled to view it.

ASIC ignores Consumers, ASIC profiting from Fraud, Mortgage Choice Misleading customers, Peter Kell