Harvey Norman and Latitude have been sued for allegedly misleading customers about ‘no deposit’, ‘interest-free’ payments. 

Court documents lodged by the Australian Securities and Investments Commission (ASIC) says that Harvey Norman failed to disclose that in order to take advantage of the payment methods, they had to sign up for a Latitude GO Mastercard.

Latitude Financial Australia is named as a defendant in the lawsuit.

ASIC also alleges Harvey Norman and Latitude misled customers about the “true cost” of the payment arrangement, with customers having to pay a minimum $537 on top of their purchase amount if they signed up for a GO Mastercard between March 15 and August 11, 2021, bought something at Harvey Norman using the “60-month interest-free” payment method, and paid the debt off within that time frame.

The companies allegedly did not mention establishment fees and monthly account service fees in their ads.

ASIC says Latitude and Harvey Norman earned significant revenues from the GO Mastercard, which are available exclusively through Harvey Norman stores and websites.    

“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 chair 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.”

ASIC is seeking fines, injunctions and declarations against Latitude and Harvey Norman.