National Australia Bank (NAB) will run advertisements correcting claims about its home loan rate as part of ASIC’s crackdown of 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 as NAB failed to qualify its claim with words to the effect ‘of the four major banks’. Outside the major banks, NAB has not had the lowest standard variable rate over the past five years.
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.’
NAB will run advertisements in Tuesday’s issues of The Sydney Morning Herald and The Age correcting the record.