Choice complains to ASIC about Aussie’s ‘dodgy’ home loan advertising

Aussie’s attempts to get consumers to use its mortgage broking services instead of going directly to a bank rely on “dodgy” claims, according to consumer group Choice.

Choice said Aussie Home Loans, owned by the Commonwealth Bank, was a “prime offender” in misleading home loan customers. Based on this belief, Choice has lodged a complaint with the Australian Securities and Investments Commission (ASIC).

Aussie is owned by CBA

Choice claims Aussie spent $25m promoting its services between 2016 and 2018, and relied on guarantees such as finding consumers the “perfect loan”, “best deal”, and “best mortgage rate” – language which Choice said misrepresents how mortgage brokers work.

Aussie CEO James Symond, however, denied the allegations, telling The Daily Telegraph he couldn’t recall the brand using “perfect” or “best” in any recent ad campaigns.

He also said it was “crazy” that consumer group Choice hadn’t brought its concerns to Aussie first.

Choice has also taken issue with Aussie claiming its services are “free”, when there are in fact commissions involved. Aussie, however, said the promotion of its “free” services relates to the costs – or lack thereof – associated with meeting with a broker.

“Choice is concerned that people who have seen these ads are likely to have formed the incorrect impression that mortgage brokers will scan the market to find them a high-quality loan, when the industry has failed to achieve this,” Choice CEO Alan Kirkland said.

Choice also noted the issue is not isolated to just Aussie, and said it was an industry-wide issue.

Aussie’s recently appointed CHE Proximity to its creative account, however Mumbrella understands the ads which Choice takes issue with were created prior to CHEP coming on board.


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