Watchdog rounds up RAMS

The RAMS Financial Group has agreed to change advertisements, which have been labelled “potentially misleading.”

The Australian Securities and Investments Commission said the television and outdoor ads featured a prominent headline claim offering a 5.75 per cent interest rate on a RAMs saver account.

This was followed with smaller statements declaring that this included a ‘0.8 per cent Bonus’ and noting that ‘monthly deposit conditions apply’

ASIC said  these ads left out important information and failed to give enough prominence to the conditions associated with the 0.8 per cent bonus.

The watchdog said it was particularly concerned by the fact that  the ads did not disclose that in order to achieve the monthly bonus rate, consumers could not make any withdrawals from the account during the month.

ASIC Commissioner Peter Kell said that ‘advertisements should give balanced information to ensure the overall effect creates realistic expectations about a financial product or service’.

Mr Kell said  RAMS had agreed to change its ads and take steps to clarify its product information.

The RAMS Saver account is issued by Westpac Banking Corporation and distributed by RAMS.