ASIC has announced that GE Money has changed its online advertising of personal loans and debt consolidation following ASIC concerns that the advertising was potentially misleading.

The advertisements stated that consumers could borrow ‘from $3,000’ with an interest rate ‘from 13.99% p.a.’ However, the fine print disclosed that only loans over $20,000 were eligible for an interest rate starting from 13.99% p.a. For loans of $3,000, interest rates started at 15.79%, and could be much higher.

ASIC was concerned that the advertising was potentially misleading because the claim in the body of the advertisement created the impression that an interest rate of 13.99% was potentially available on a $3,000 personal loan. ASIC’s view was that the disclosure in the fine print was insufficiently prominent to qualify that impression.

ASIC recently issued Consultation Paper 178 Advertising credit products and credit services: Additional good practice guidance (CP 178).