Online lender complains about Cannex

CANNEX has been attacked in a complaint to the ACCC for promoting a "find the best" loan search tool that cuts out some loan providers.

Online lender complains about Cannex

INDEPENDENT financial information provider Cannex has been attacked in a complaint to the competition watchdog for promoting a "find the best" loan search tool that cuts out some loan providers.

Award-winning online lender Ratebusters alleged that Cannex was "misleading and deceiving'' internet users by claiming to identify the "best home loans'' at a linked site jointly owned by web group Ninemsn.com.au.

The root of the dispute was Ratebusters' refusal to pay so-called "click through'' fees of at least $75 to the site, RateCity.

RateCity is a joint venture of Cannex and Ninemsn.com.au and the link from Cannex says: "Search for the best home loan at RateCity''. But in a written complaint to the Australian Competition & Consumer Commission on Monday, Ratebusters general manager Angela Cooney accuses Cannex of cutting out Ratebusters because it refused to pay the fees.

She said the Ratebusters loan was "clearly one of the best'', citing two magazine-based awards for cheapest loan.

"RateCity is only a fees-for-clicks website and not independent,'' she said in the complaint.

"Consumers are forced to utilise RateCity if they wish to conduct a comparison search which only provides them with details of lenders who agree to pay for each click-through.''

The complaint comes a month after the ACCC obtained a three-year, court-enforceable undertaking from the operators of health website iSelect Health.

The ACCC deemed that iSelect Health misled web users when it purported to offer a comprehensive comparison of health insurance products.

Cannex is an independent financial information provider.

Cannex founder and chairman Andrew Willink is also executive chairman of RateCity.

He did not return calls yesterday.

However, in response to similar public complaints from Ratebusters in September, Mr Willink said the fees were only payable in return for "leads'' for loans.

"All we need from Ratebusters is when we do put a lead to them, they will pay for it,'' he said.

"They don't understand and they are not prepared to listen.''