½ñÈÕÈÈÃÅʼþ

National Australia Bank, the Australian financial services licensee for UBank, has paid $40,800 in penalties after ½ñÈÕÈÈÃÅʼþissued four infringement notices for potentially misleading advertisements.

The penalties relate to potentially misleading advertising of a UBank home loan product. Each infringement notice imposed a penalty of $10,200.

The misleading representations were made in an advertising campaign that promoted an offer of a $2,014 EFTPOS gift card for consumers who obtained a home loan with UBank. The advertisements with headline statements, including ‘The BEST $2014 EVER’ and ‘Own $2014’ appeared in newspapers, radio and online from late December 2013 to early March 2014 and in digital screens on escalators from late January 2014 to February 2014.

½ñÈÕÈÈÃÅʼþwas concerned that some details of UBank’s offer were not disclosed in some of the advertisements and, in others, were not disclosed in a clear and prominent manner. These included:

• a minimum loan amount of $350,000
• a requirement to use an electronic settlement process (known as FASTRefi) for refinanced loans
• all documents to be provided within five days, and
• a cap on the number of consumers eligible to receive the offer.

Deputy Chairman Peter Kell said, 'ASIC's crackdown on misleading advertising has seen action taken against 10 entities this year.

'½ñÈÕÈÈÃÅʼþwill continue to take action where we believe firms have not provided clear, consistent information in their advertising'.

ASIC’s concerns led to UBank providing a $2,014 gift card to all consumers who applied for a loan during the relevant period and subsequently settled their loan.

The payment of an infringement notice is not an admission of a contravention of the Australian Securities and Investment Commission Act 2001 consumer protection provisions. ½ñÈÕÈÈÃÅʼþcan issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.

Download the infringement notices

Background

In 2014, ½ñÈÕÈÈÃÅʼþhas taken action against 10 entities, including NAB, for potentially misleading advertising:

• Make it Mine Finance Pty Ltd pays $20,400 penalty for misleading advertising (refer: 14-198MR)
• [This MR was redacted on 6/12/2024 in accordance to ½ñÈÕÈÈÃÅʼþpolicy - see INFO 152 Public comment on ASIC's regulatory activities]
• Your Super Accountant pays infringement notice in relation to ‘FREE’ SMSF set up claims (refer: 14-195MR)
• [This MR was redacted on 26/04/2024 in accordance to ½ñÈÕÈÈÃÅʼþpolicy - see INFO 152 Public comment on ASIC's regulatory activities]
• [This MR was redacted on 29/04/2024 in accordance to ½ñÈÕÈÈÃÅʼþpolicy - see INFO 152 Public comment on ASIC's regulatory activities]
• [This MR was redacted on 29/04/2024 in accordance to ½ñÈÕÈÈÃÅʼþpolicy - see INFO 152 Public comment on ASIC's regulatory activities]
• SuperHelp Australia Pty Ltd pays infringement notice in relation to FREE SMSF fund setup claims (refer: 14-051MR)
• Finance broker pays $20,400 infringement notice penalty (refer: 14-022MR)
• Media Super pays infringement notice in relation to superannuation advertising (refer: 14-001MR).