A major lender has come under fire from ASIC for incorrectly claiming to have the lowest standard variable rate.
National Australia Bank (NAB) will run advertisements correcting claims about its home loan rate as part of ASIC’s crackdown on false and misleading financial promotions.
Earlier this month, a NAB promotional wraparound published in The Sydney Morning Herald and The Age claimed the bank "had the lowest standard variable rate for more than five years".
The claim was false since NAB failed to qualify its claim with words that would indicate "of the four major banks". Outside the major banks, NAB has not had the lowest standard variable rate in the past five years.
“It is important that all firms ensure financial promotions are fair, clear and not misleading so that consumers are able to make informed decisions,” ASIC deputy chairman Peter Kell said.
“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,” Mr Kell said.
NAB will run advertisements in Tuesday’s issues of The Sydney Morning Herald and The Age correcting the claim.