ASIC was concerned the website gave the impression the advertised rate for a variable home loan applied to both existing and new loans when, in reality, it only applied to new home loans. This meant some customers with existing variable rate home loans were charged interest over the advertised rate.

In response to ASIC’s concerns, MyRate has made changes to its website to prominently state on the home page that the advertised rate only applies to new loans.

Further, MyRate has also agreed to write to all affected customers to confirm the advertised rate only applies to new loans. MyRate will provide their internal dispute resolution contact details and customers are encouraged to contact MyRate if they have any concerns that they may have been misled about the interest rate on their loan, or other questions about their loan.

ASIC Deputy Chairman Peter Kell said ASIC expects credit licensees to provide clear and accurate information to consumers in their advertising.

‘Where advertising promotes a particular product feature, such as a low interest rate for a loan, the credit provider needs to make sure that any qualifications about how that rate applies are clear and that the information is not misleading in any way’.

MyRate customers who believe that they may have been misled by the website should contact MyRate at: enquiries@myrate.com.au

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