Jacaranda is a credit licensee that, at the relevant times, offered loans up to $15,000, typically for 12–36 months. ASIC was concerned that a repayment estimate calculator on Jacaranda’s 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
- The calculator was advertising loans at an annual percentage rate that Jacaranda did not offer
ASIC deputy chair Sarah Court said: “ASIC 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.
“ASIC 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.”
Jacaranda removed the repayment calculator from its website in September 2022 following commencement of ASIC’s investigation.
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 ASIC’s concerns are set out in the infringement notices that have been published on the Credit and ASIC Act infringements notices register.
