The Australian Competition and Consumer Commission has instituted proceedings against Wizard Mortgage Corporation Limited in the Federal Court at Melbourne, alleging false, misleading and deceptive conduct in the advertising of its loan product known as the RateBreaker loan.
The ACCC alleges that between around June 2001 and July 2001 Wizard advertised the RateBreaker loan on commercial television and promoted this loan as having certain features when in fact these features were not available. Specifically, it is alleged that Wizard promoted the RateBreaker loan at the interest rate of 5.64 per cent with features such as direct salary crediting and the ability to change monthly repayments to fortnightly or weekly repayments. It is alleged these features were not available with the RateBreaker loan but were available with loans taken out at a higher interest rate.
As a consequence the ACCC alleges that Wizard in relation to the advertising of this loan product has engaged in misleading or deceptive conduct and made false or misleading representations in contravention of the Trade Practices Act 1974.
The ACCC is seeking court orders including:
- declarations that Wizard's advertising breached the relevant provisions of the Act
- injunctions restraining Wizard from advertising in the same way in the future
- orders requiring Wizard to publish corrective advertisements in the media in which the original advertising appeared
- costs.
A directions hearing for this matter is listed for Friday 15 March 2002 in the Federal Court, Melbourne.