Regulatory Alerts2023-11-09 | RG-220RG 220 Early termination fees for residential loans: Unconscionable fees and unfair contract terms
The Australian Securities and Investments Commission (ASIC) issued this guide to inform lenders regulated under the National Credit Act about when early termination fees for residential loans may be deemed unconscionable or unfair. It outlines the specific factors ASIC will evaluate when determining whether to pursue enforcement action against potential breaches of the National Credit Code or ASIC Act. The guidance specifically applies to credit contracts entered into before 1 July 2011 or those containing exempt break fees, as subsequent regulations generally prohibit such charges.
Share