ASIC concerned about use of comparison rates

ASIC said it had identified numerous areas of non-compliance with NCCP guidelines around comparison rates. The watchdog said many lenders are not advertising the rates correctly.

“ASIC wishes to ensure that advertising of the cost of credit and the use of comparison rates is not confusing or misleading, and that it assists consumers to make informed decisions when purchasing credit products,” the regulator said.

The problems ASIC identified were lenders failing to consistently advertise comparison rates along with annual percentage rates, not advertising the rates prominently enough, failing to include an NCCP prescribed disclaimer about the accuracy of comparison rates and failing to properly calculate comparison rates.

Source: Australian Broker News