ASIC has questioned consumer group Choice's role in a mortgage lending campaign, it has been reported.
The Australian Financial Review has claimed ASIC is making inquiries into Choice's involvement with the One Big Switch campaign, which would see it collect a finder's fee for referring comsumers to group bargaining site, One Big Switch. The AFR has reported that ASIC will examine whether Choice requires an ACL for its role in the campaign.
One Big Switch may also be the target of ASIC inquiries, it has been claimed. While the group holds a credit licence, the AFR has said ASIC will investigate whether it is complying with responsible lending obligations.
The consumer drive aims to sign up customers to switch mortgage lenders, and subsequently secure group discounts. Broker Laurie Parkes from Front Runner Mortgage Group recently told Australian BrokerNews he questions the campaign's efficacy.
"Lenders are going to assess each application on a case-by-case basis, so market forces will come into the equation," he said.
Parkes indicated he believed, in spite of the controversy surrounding it, the campaign would eventually sputter out.
"I think this will blow over once they realise it's not going to work," Parkes commented.