Mutuals reject ABA claim on banking competition research
21 May 2010
Abacus, the industry body for credit unions and mutual building societies, has rejected claims by the Australian Bankers' Association that it is seeking to mislead consumers.
A TV advertising campaign launched this week highlighted research by InfoChoice which shows home owners with a mortgage from a credit union or building society could be up to $35, 000 better off over the life of the loan. Clear disclaimers in the advertisements and website provide the basis for calculations.
The ABA claims that the research is "deceptive and misleading".
Abacus strongly rejects this claim and has released a copy of the methodology for reference (pdf below).
"We are confident in the approach used by InfoChoice and surprised by the ABA's response" said Ms Louise Petschler, CEO of Abacus – Australian Mutuals.
Ms Petschler said Abacus stood by the research carried out by InfoChoice, a well-respected independent research firm. [1]
"Our advertising campaign aims to let consumers know about the choices they have in banking," said Ms Petschler. "We're encouraging more Australians to look beyond the big banks and to consider the alternative that mutuals offer." [2]
For more information, please contact:
Pamela Eldridge
Senior Adviser - Media, Public Affairs
(02) 8299 9024; 0423 843 790;
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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[1] http://www.bankers.asn.au/smarter-banking/best-account.html
[2] http://www.treasurer.gov.au/DisplayDocs.aspx?doc=economicnotes/2010/012.htm&pageID=000&min=wms&Year=&DocType=4
