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ARTICLE · 01 NOVEMBER 2023

Amending loan documents to comply with Unfair Contract Terms laws

Bennett & Philp Lawyers
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Discusses measures which all Lenders can implement to ensure that their loan documentation with consumers complies with UCT laws.

AustraliaFinance and Banking
Nadia Rawlings
Nadia Rawlings
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Lenders, both private and retail, will be aware of changes to the laws regarding Unfair Contract Terms (the "UCT") that take effect from 9 November 2023.

The UCT laws are contained in the Australian Consumer Law section of the Competition and Consumer Act 2010 (the "ACL") and the Australian Securities and Investments Commission Act 2001 (the "ASIC Act") and they address the obligation of contracting parties to ensure that there are no unfair terms in standard form contracts with consumers and small businesses. In so far as the contract relates to the provision of credit or financial services, it is the UCT laws in the ASIC Act that apply.

We discussed the nature and effect of the UCT laws under the ASIC Act and their imminent changes in detail in our publication designed for private mortgage funds titled Changes to Unfair Contract Terms Laws – What Private Lenders Need to Know. If you haven't read this publication, we encourage you to do so.

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