NAB is running ads “correcting the record” about its home loan rate, after the Australian Securities and Investments Commission (ASIC) found it was making false and misleading advertising claims.
It marks the third time that the bank has been given a rap on the knuckles by the corporate watchdog over its advertising in the last few months.
ASIC found that a promotional wraparound printed in the Sydney Morning Herald and the Age earlier this month claiming that NAB “had the lowest standard variable rate for more than five years” was false, as NAB failed to qualify the claim was related to the four major banks. Outside of the major banks, NAB has not had the lowest standard variable rate over the past five years.
As a result, NAB has printed corrected advertisements in both papers.
ASIC deputy chairman Peter Kell said: “It is important that all firms ensure financial promotions are fair, clear and not misleading so that consumers are able to make informed decisions. 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.”
In reponse, a NAB spokesperson told AdNews that: "We accept the concerns raised by ASIC over recent home loan advertising. These concerns are the result of an unintended error by NAB in relation to one print advertisement. NAB is committed to doing the right thing by our customers and we have fully cooperated with ASIC in relation to this matter."
Earlier this month NAB was fined $10,200 by the corporate watchdog over misleading claims in the product disclosure statement of its NAB Annuity Term Deposit product between June 2013 and August 2014.
It was also fined $40,800 in penalties in September after ASIC issued four infringement notices for potentially misleading advertising of a UBank home loan product. The advertisement promoted an offer of a $2014 gift card for customers who obtained a home loan with UBank but failed to adequately disclose details of the offer in some of the ads.
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