Oh really? Chrisco telling Porkies

Chrisco is looking more and more suspect as the days progress. Just the other day they decided to file a complaint with the Advertising Standards Authority about Hampsta’s comparative advertising campaign. They were slaughtered on all counts.

Today I have obtained a brochure of Chrisco’s that purports to hold customer funds in AAA rated banks. This very interesting because there is only one in New Zealand and that is Rabobank.

Chrisco Pork PiesA quick call to the cutomer service desk confirms for me that Chrisco’s AAA rated bank is actually Westpac. Now this presents a slight problem for Chrisco. In the attached brochure you can clearly see that they have described their banks as AAA rated. Their customer service desk confirms that it is actually only one bank and that it is Westpac.

Unfortunately for them Westpac isn’t actually AAA rated. It is in fact AA rated at best.

This would actually be serious if there was some decent legislation around this industry. Unfortunately the laws covering this are the Layby laws which are woefully inadequate.

Still this is a clear case of false advertising and almost certainly there should be a complaint laid with the Commerce Commission. The Fair Trading Act prohibits misleading and deceptive conduct, false representations and unfair practices. It covers advertising and the sale of goods and services. It is administered by the Ministry of Consumer Affairs and enforced by the commission.

Meanwhile there is a perfect opportunity to regulate this industry to prevent collapses like those already experienced and that is to bring the industry under the Finance Company regulations currently being looked at in parliament. Right now if these companies fall over there is precious little some of the poorest in new Zealand can do if their deposited funds are gone.