07-95 ASIC obtains injunctions against loan calculator operator
Thursday 12 April 2007
ASIC has obtained orders in the Supreme Court of Queensland today against Gold Coast company, Etracka Pty Ltd (Etracka), following concerns over a loan calculator licensed to mortgage brokers throughout Australia.
These orders follow allegations by ASIC that the information provided by the company’s Express Simulator calculator was false, misleading or deceptive or likely to mislead or deceive.
The Express Simulator is currently accessible to members of the general public via a number of mortgage brokers' websites. It is also accessible via a website operated and controlled by Etracka located at www.etracka.com
The Court ordered that Etracka add a warning to Steps 1 and 4 of the Express Simulator, and to the Simulation Express Report which is subsequently emailed to the user of the calculator. This warning will now advise users that if they have not elected to make an additional monthly repayment into the Non-transactional Loan (which is as high as reasonably possible having regard to the user’s financial circumstances and the terms and conditions of their loan), the calculator will not provide a reliable comparison between a Non-transactional Loan and a Transactional Loan used in accordance with the eTracka Strategy.
The Court also ordered that Etracka send corrective notices to its members, clients, and licensees, and users of the Express Simulator calculator within seven days.
ASIC Website: Printed 07/26/2008
