The ACCC is claiming that mass retailer Harvey Norman have been selling questionable financial packages in partnership with Latitude Financial Services, now they are being sued.

Latitude Financial Services and Harvey Norman are set to face court and big fines if they are found to be guilty of running advertisements that promoted ‘no deposit’, ‘interest free’ payment methods which allegedly didn’t disclose that customers could only use that payment method if they applied for and used a Latitude GO Mastercard.

ASIC has taken Latitude and the electronics retailer on over the companies’ interest-free offers, this is not the first time that Harvey Norman’s so-called deals have been questioned.

The Australian Securities and Investments Commission alleges that these ads from January 2020 to August 2021 were misleading because they did not disclose these terms. ASIC also alleges the true cost of using the Latitude GO Mastercard was misrepresented as establishment fees and account service fees were not adequately disclosed.

“ASIC is concerned the advertising did not provide consumers with the full picture, that they could only use the interest free payment method by applying for and using certain Latitude credit cards.,” ASIC deputy chairwoman Sarah Court said,

“These credit cards, ASIC alleges, attracted substantial fees over the course of the 60-month payment term, and exposed consumers to the risks of incurring further debts and charges, as well as potentially affecting their credit rating.”

Ms Court said customers who signed up for the Latitude GO Mastercard between March 16, 2021, and August 2021 and used the 60-month interest free payment method were liable for $537 in fees on top of the purchase amount

“Consumers have a right to make informed choices. Credit providers and retail partners such as Latitude and Harvey Norman should ensure that their advertising clearly discloses all important information about payment methods and any fees,” Ms Court said.

ASIC is seeking declarations, pecuniary penalties, injunctions and other orders against Latitude and Harvey Norman. A first court date is yet to be set.

In a statement, Latitude Financial said it takes the allegations very seriously and worked cooperatively with ASIC during its investigation.

They claim  that the finance provider received ASIC’s civil court filings yesterday, and is reviewing the claim.

“The allegations relate to historical advertisements that ran between 1 January 2020 and 11 August 2021,” the company said.

“Latitude takes these allegations very seriously and has worked cooperatively with ASIC during its investigation.”

“Latitude is now reviewing ASIC’s claim and will not be commenting further at this stage given the matter is before the courts.”