Following on from my post last week on advertising, comes news of action by ASIC:

  ASIC has accepted an enforceable undertaking from Mortgage Point Pty Ltd (Mortgage Point) in response to its concerns that since October 2001, Mortgage Point, a Melbourne-based mortgage orginator, made potentially misleading and deceptive statements in its promotional brochures.
 Mortgage Point published various brochures in which it claimed to offer ‘independent’, ‘impartial’ and ‘unbiased’ advice about mortgages.
The brochures stated that Mortgage Point:

• offers an impartial and unbiased loan advisory service;
• gives free unbiased advice;
• acts as an independent mortgage broker; and
• provides independent advice.

ASIC formed the view that the claims were misleading and deceptive because Mortgage Point and its agents:

• only receive commission from, and provide advice in relation to lenders on its panel; and
• do not provide advice in relation to lenders who are not on its panel.

As part of the enforceable undertaking, which is provided under the consumer protection provisions of the ASIC Act, Mortgage Point has given an undertaking that:

• it will not make any of the above claims or use the words ‘unbiased’, ‘impartial’ or ‘independent’ in any future advertising or promotional material;
• it will provide compensation to any customer who has suffered loss as a result of relying on the claims Mortgage Point is ‘unbiased’, ‘impartial’ or ‘independent’;
• it will implement a compliance program; and
• it will make a financial contribution towards consumer education or similar programs.