ob体育

media release (23-028MR)

Repayment calculator leads to infringement notices against credit company

Published

ob体育 has issued two infringement notices to credit provider Jacaranda Finance Pty Ltd (Jacaranda) in further action to protect consumers against poor conduct by credit providers.听

Jacaranda is a credit licensee that, at the relevant times, offered loans up to $15,000, typically for 12 to 36 months. ob体育 was concerned that a repayment estimate calculator on Jacaranda鈥檚 website may have been false or misleading because:

  • the annual percentage rate used in the calculator was significantly less than the rate that applied to most consumers who entered a credit contract with Jacaranda; and
  • the calculator was advertising loans at an annual percentage rate that Jacaranda did not offer.听

ob体育 Deputy Chair Sarah Court said, 鈥榦b体育 was concerned that consumers were relying on the estimated repayments that the calculator generated when deciding whether to apply for a loan and would use this information to determine whether a loan was appropriate for them. This information was misleading and could have led consumers to apply for a loan that was more costly than they had expected.

鈥榦b体育 will continue to promote the confident and informed participation of consumers in the financial system, by requiring lenders to ensure that the information on their websites accurately reflects the credit product being offered,鈥� concluded Ms Court.

Jacaranda removed the repayment calculator from its website in September 2022 following commencement of ob体育鈥檚 investigation.听聽聽聽聽

Jacaranda paid $26,640 in compliance with the infringement notices on 8 February 2023. Payment of an infringement notice is not an admission of guilt or liability. The specific reasons for ob体育鈥檚 concerns are set out in the infringement notices which have been published on the鈥�Credit and ob体育 Act infringements notices register.听

Background

ob体育 encourages promoters of financial products and credit products to review ob体育鈥檚 Regulatory Guide 234 Advertising financial products and services (including credit): Good practice guidance which provides useful information to help promoters comply with their legal obligations not to make false or misleading statements or engage in misleading or deceptive conduct.

ob体育 encourages Australians to shop around when considering loans and credit. ob体育鈥檚 Moneysmart website contains information on and how to repay a loan sooner using the .