In a recent article (Free Currency Transfer – Free Does Not Always Mean Free) we looked at the fact that many companies continue to get away with false promises in their advertising. In fact, in the UK, the national Advertising Standards Authority (ASA) received 31,298 complaints about 18,990 ads (none were about us, that’s for sure!). This time, the bad news about dodgy advertising comes from Down Under.
See how CurrencyFair compares to other money transfer companies
Bank Advertisements Confusing And MisleadingAccording to a new study and report, most Australians believe that not only are bank advertisements confusing, they are actively misleading. The report found that very few people know how to correctly interpret the financial content listed within the advertisements. Here at CurrencyFair we weren’t too surprised at the results because we constantly see examples from unscrupulous companies with misleading information about “0% Commission” and “Commission-Free Currency Exchange.”
Most people don’t know that the biggest fee when sending money internationally is often the exchange rate itself.Most people don’t know that the biggest fee when sending money internationally is often the exchange rate itself. As explained in our earlier article on how to beat the interbank exchange rate, the interbank rate is the international standard rate used by the big banks to trade amongst themselves. Ordinary people don’t get access to the interbank rate. Banks know this and that’s why they slap on an extra 3 – 6 per cent ‘spread’ on top of the 0% exchange rate they get to use. So you, as an everyday person, have to pay an extra 3 – 6% exchange rate just for the privilege of sending your money somewhere – and that’s before the fixed sending or receival fee they may charge on top.
Banks know this and that’s why they slap on an extra 3 – 6 per cent ‘spread’ on top of the 0% exchange rate they get to use amongst themselves.
For straight-forward transparency, click here to see how CurrencyFair works to save people money.The report into banking advertising was a little disheartening:
- 70.4% of respondents thought bank advertisements were ‘confusing’
- 64.7% believed bank ads were ‘misleading’
- Only a third of the people (33.1%) thought bank advertisements were ‘honest’
- Only 26.4% of respondents said the bank advertisements were ‘clear’.
We need a banking system where consumers are informed and confident and don’t have to wade through the fine print to determine the best deal.While the Government’s Financial System Inquiry will be reviewing the structure and efficiency of Australia’s entire financial system, CurrencyFair endorses calls being made for greater support for everyday consumers within the review process. The Financial System Inquiry should meet the needs of users and drive greater competition. Fairer financial advertising that people can actually understand would be a good start.