By: Staff Reporter
Banks that charge unfair exit fees on mortgages can expect to feel the wrath of the corporate regulator.
An ASIC representative told a parliamentary committee that it was gearing up to enforce laws that would protect consumers from unfair contracts, including bank contracts.
Under the new regulations, which come into play from 1 July, a term will be regarded ‘unfair’ if it causes significant imbalance in the parties’ rights and obligations arising under that contract.
ASIC chairman Tony D’Aloisio said there will be “additional rights that will exist in dealing with mortgage exit fees where consumers feel there has been unfairness or unconscionability”.
But Nationals senator John Williams said the new laws did not go far enough and should be prohibited outright.
Mr Williams told the Australian Financial Review, that customers were being handcuffed to their bank.
“While you have an exit fee, the bank might have a monthly charge…but you are not going to pull out because you have got to pay a $1,000 exit fee so you are actually handcuffed to their product,” he said.
If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.
A former broker head has returned to MyState Bank to tackle turna...
The leading brokers in South Australia and the Northern Territory...
The complaints authority has named a new executive general manage...