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Key changed fee-free advice claims after complaints to regulator

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  • 09/07/2020
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Key changed fee-free advice claims after complaints to regulator
Key Retirement Solutions changed claims about its fee-free advice on an advert after the Advertising Standards Authority (ASA) received complaints saying it was mis-leading.

 

The ASA told Mortgage Solutions that it received three complaints against a TV and a video on demand advert for Key Retirement Solutions from three members of the public in January.

They challenged whether the advert’s claims that “all our advice is free of charge” was misleading.

“We contacted the advertiser, who made changes to the ads to make it clear that the free advice was only in relation to their own branded products,” the ASA said.

“On the basis that the ads were changed, we agreed to resolve the complaints informally, without the need for an investigation.”

Key offers its own branded equity release lifetime mortgage products for which advice is free.

For retirement interest-only (RIO) or standard later-life mortgages, Key charges an advice fee of 1.99 per cent of the amount released, subject to a minimum of £1,499.

 

Updated wording

Key Group told Mortgage Solutions that customers who received advice from Key Equity Release were provided access to over 80 own branded products and do not pay an advice fee.

“The ASA contacted us following feedback from three customers about our TV adverts as they were worried that the statement ‘all our advice is free of charge’ was misleading,” it said.

“As a responsible brand, we reviewed our advertising and updated the wording in the supporting legal statements at the bottom of the screen to state ‘All our advice is free and relates to Key branded plans only’ which the ASA agreed clarified our offering. The case is now closed.”

 

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