A home loan information pamphlet, Finding Your Way Through The Home Loan Maze - A simple guide for consumers, has been backed by the Acting Chairman of the Australian Competition and Consumer Commission, Mr Allan Asher.
The pamphlet was developed with input from the ACCC and the Consumer Credit Legal Service in Western Australia.
It helps consumers to understand some of the terms and concepts involved in home loan products, Mr Asher said. While it does not provide specific information on products available, or their respective costs and repayment options, it does provide some basic information so that consumers can seek further advice. It explains in a simple and easy to read format terms such as guarantee, interest rates, establishment fees, bank charges, and refinancing. It also answers some of the common questions consumers should be asking when looking for a home loan.
The pamphlet was released by the Bank of Western Australia (BankWest) through its Customer Service Centres and is now available to the general public through ACCC Regional Offices, consumer and financial counselling organisations, and State Consumer Affairs Departments.
It fulfils a BankWest legal obligation after an ACCC investigation into allegations that BankWest had given incorrect information about home loan products offered by non-bank lenders in 1996.
After the investigations, BankWest accepted that its Sales and Customer Management Units Home Loan Helpline had given incorrect information about certain home loan products and financial services provided by one or more of the non-bank lenders, Mr Asher said. BankWest stopped the conduct and offered compensation to any customer who may have suffered financial loss as a result. It also published corrective advertising and developed the information pamphlet for intending home loan consumers.
The ACCC puts a high priority on ensuring that businesses actively carry out their responsibilities under the Trade Practices Act by providing consumers with correct information to make informed choices.
For further information about this media release: Mr Allan Asher, Acting Chairman, (06) 264 2838 Ms Lin Enright, Director, Public Relations, (06) 264 2808 [from 27 October (02) 6243 1108]
The pamphlet was developed with input from the ACCC and the Consumer Credit Legal Service in Western Australia.
It helps consumers to understand some of the terms and concepts involved in home loan products, Mr Asher said. While it does not provide specific information on products available, or their respective costs and repayment options, it does provide some basic information so that consumers can seek further advice. It explains in a simple and easy to read format terms such as guarantee, interest rates, establishment fees, bank charges, and refinancing. It also answers some of the common questions consumers should be asking when looking for a home loan.
The pamphlet was released by the Bank of Western Australia (BankWest) through its Customer Service Centres and is now available to the general public through ACCC Regional Offices, consumer and financial counselling organisations, and State Consumer Affairs Departments.
It fulfils a BankWest legal obligation after an ACCC investigation into allegations that BankWest had given incorrect information about home loan products offered by non-bank lenders in 1996.
After the investigations, BankWest accepted that its Sales and Customer Management Units Home Loan Helpline had given incorrect information about certain home loan products and financial services provided by one or more of the non-bank lenders, Mr Asher said. BankWest stopped the conduct and offered compensation to any customer who may have suffered financial loss as a result. It also published corrective advertising and developed the information pamphlet for intending home loan consumers.
The ACCC puts a high priority on ensuring that businesses actively carry out their responsibilities under the Trade Practices Act by providing consumers with correct information to make informed choices.
For further information about this media release: Mr Allan Asher, Acting Chairman, (06) 264 2838 Ms Lin Enright, Director, Public Relations, (06) 264 2808 [from 27 October (02) 6243 1108]