An ASIC review of advertising targeting Chinese speaking home buyers has prompted four mortgage broking firms to change their home loan advertising.
The mortgage broking firms which published the advertising are:
- Ace Mortgage Market Pty Ltd (also known as 袁翹新會計師),located in Parramatta, NSW;
- Aus Realty Group Pty Ltd (also known as 澳人信貸),located in Hurstville, NSW;
- Apex Finance & Mortgage and its business owner (also known as 聯通信貸), located in Burwood, NSW; and
- Trans Australia Mortgage Finance Pty Ltd (trading as Apple Home Loans, 全盛信), located in Burwood and Chatswood, NSW.
The range of concerns contained in the advertisements targeting Chinese speaking home buyers included:
- representations in Chinese such as ‘lowest fixed rate’ and ‘no proof of income’ – which may be false and misleading statements, or indicate a breach of the responsible lending obligations,
- heavy reliance on disclaimers (such as ‘terms and conditions apply’) that did not explain qualifying terms and conditions in the same advertising. Also, promoters tended to advertise benefits in Chinese language, but stated the disclaimers and qualifications in English, when the advertising was aimed at non-English speaking consumers,
- failure to disclose the required comparison rate when quoting an annual percentage interest rate,
- failure to disclose the required warning about the accuracy of the comparison rates, and
- failure by their promoters to regularly review the advertisements to ensure accuracy and compliance with the law.
The specific concerns identified in relation to each company are outlined further below.
ASIC Deputy Chair Peter Kell said, ‘The Australian Consumer Law applies to all advertising, including advertising in foreign languages. Consumers who are unable to understand written English are likely to be more reliant on advertising in their native language when in need of a financial product. Promoters should ensure that their advertising is up to date and complies with the law. If the majority of the advertising is in a foreign language, the warnings, disclaimers or qualifications should be prominently disclosed in the same advertising and explained in that same language.
‘ASIC will continue to monitor all forms of advertising, including advertising targeted at non-English speaking consumers’, Mr Kell said.
