The Australian Securities and Investments Commission has ruled that Credit Union Australia's advertisements for its Rate Breaker home loan are misleading. CUA has agreed to maintain the advertised discount, even though is terms and conditions allow it to change the discount at any time.Rate Breaker's interest rate is set at a 100 basis point discount to the average of the standard variable rate of the Big Four banks.ASIC said in a statement yesterday that its view was that CUA's advertising gave the impression that the 100 bps discount applied for the life of the loan.However, the terms and conditions allowed CUA to change the discount at any time and stipulated that the interest could not fall below a minimum rate of three per cent.ASIC said these terms and conditions either did not feature in CUA's adverts or, where they did feature, they were not sufficiently well displayed.As part of an enforceable undertaking, CUA will ensure that all borrowers who took out a Rate Breaker loan, up to August 31 this year, will, for the duration of the loan, receive a discount of no less than 100 bps off the average advertised variable rate of the Big Four banks.It will also change the product's advertising to "sufficiently highlight" the terms and conditions. And it will notify existing Rate Breaker borrowers of its undertaking.