http://asic.gov.au/asic/asic.nsf/by... prompt MyRate to change website?opendocument
MyRate Pty Ltd (MyRate) has made changes to its website and will contact affected customers following ASIC concerns that home loan interest rates advertised on the website were likely to mislead consumers.
ASIC was concerned the website gave the impression the advertised rate for a variable home loan applied to both existing and new loans when, in reality, it only applied to new home loans. This meant some customers with existing variable rate home loans were charged interest over the advertised rate.
In response to ASIC's concerns, MyRate has made changes to its website to prominently state on the home page that the advertised rate only applies to new loans.
Further, MyRate has also agreed to write to all affected customers to confirm the advertised rate only applies to new loans. MyRate will provide their internal dispute resolution contact details and customers are encouraged to contact MyRate if they have any concerns that they may have been misled about the interest rate on their loan, or other questions about their loan.
ASIC Deputy Chairman Peter Kell said ASIC expects credit licensees to provide clear and accurate information to consumers in their advertising.
‘Where advertising promotes a particular product feature, such as a low interest rate for a loan, the credit provider needs to make sure that any qualifications about how that rate applies are clear and that the information is not misleading in any way’.
MyRate customers who believe that they may have been misled by the website should contact MyRate:
by email to enquiries@myrate.com.au
by phone on 1300 663 558
in writing to Suite 901, 447 Kent Street Sydney NSW 2000
Background
Regulatory Guide 234 Advertising financial products and services (including credit): Good practice guidance (RG 234) provides guidance on the promotion and advertising of financial products.
MyRate loans are funded by ING Bank (Australia) Limited and are managed by Firstfolio Limited.
MyRate operated at www.myrate.com.au
MyRate Pty Ltd (MyRate) has made changes to its website and will contact affected customers following ASIC concerns that home loan interest rates advertised on the website were likely to mislead consumers.
ASIC was concerned the website gave the impression the advertised rate for a variable home loan applied to both existing and new loans when, in reality, it only applied to new home loans. This meant some customers with existing variable rate home loans were charged interest over the advertised rate.
In response to ASIC's concerns, MyRate has made changes to its website to prominently state on the home page that the advertised rate only applies to new loans.
Further, MyRate has also agreed to write to all affected customers to confirm the advertised rate only applies to new loans. MyRate will provide their internal dispute resolution contact details and customers are encouraged to contact MyRate if they have any concerns that they may have been misled about the interest rate on their loan, or other questions about their loan.
ASIC Deputy Chairman Peter Kell said ASIC expects credit licensees to provide clear and accurate information to consumers in their advertising.
‘Where advertising promotes a particular product feature, such as a low interest rate for a loan, the credit provider needs to make sure that any qualifications about how that rate applies are clear and that the information is not misleading in any way’.
MyRate customers who believe that they may have been misled by the website should contact MyRate:
by email to enquiries@myrate.com.au
by phone on 1300 663 558
in writing to Suite 901, 447 Kent Street Sydney NSW 2000
Background
Regulatory Guide 234 Advertising financial products and services (including credit): Good practice guidance (RG 234) provides guidance on the promotion and advertising of financial products.
MyRate loans are funded by ING Bank (Australia) Limited and are managed by Firstfolio Limited.
MyRate operated at www.myrate.com.au
