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.

Background

ASIC’s active monitoring of financial services and credit advertising has forced companies to change the way they go about selling themselves, including more than 10 this year. These include:

• NAB’s UBank (refer: 14-235MR)
• Make it Mine Finance Pty Ltd (refer: 14-198MR)
• [This MR was redacted on 6/12/2024 in accordance to ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities]
• Your Super Accountant (refer: 14-195MR)
• [This MR was redacted on 26/04/2024 in accordance to ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities]
• [This MR was redacted on 29/04/2024 in accordance to ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities]
• [This MR was redacted on 29/04/2024 in accordance to ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities]
• SuperHelp (refer: 14-051MR)
• Jeremy (WA) Pty Ltd (refer: 14-022MR)
• Media Super (refer: 14-001MR)
• a number of banks and mutual authorised deposit-taking institutions (refer: 13-325MR)
• Insure 247 Pty Ltd (refer: 13-291MR)
• Woolworths (refer: 13-177MR)
• HSBC (refer: 13-176MR and 12-73AD)
• Commonwealth Bank of Australia (refer: 13-176MR and 12-03MR)
• GE Money (refer: 12-198MR)
• RAMS (refer: 12-153MR), and
• Bankwest (refer: 12-110MR).