Fair Loans Foundation, a social lender funded by National Australia Bank, has been pulled up by ASIC for understating interest rates.Yesterday, the Australian Securities and Investments Commission said the interest rates being disclosed to consumers in advertising and in loan contracts by Fair Loans were less than the actual rates charged. Fair Loans quoted annual percentage rates of 15.95 per cent and 19.95 per cent when the actual rate of interest charged was 28.25 per cent and35 per cent, respectively. ASIC said this led to consumers being overcharged interest.ASIC said Fair Loans, which has already repaid 864 consumers around A$157,000 in overcharged interest, had entered into a repayment plan to pay the infringement notices.Fair Loans operates on a not-for-profit basis. It provides loans of up to $3000 over 12 months "at low interest rates to individuals who need cash fast" according to its website.The Department of Families, Housing, Community Services and Indigenous Affairs has also supported Fair Loans in its work.