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ARTICLE · 30 JULY 2026

Unconscionable Lending Practices And Guidance For Lenders

Bartier Perry Solicitors
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We recently examined how fraud can undermine indefeasibility and the resulting risks for lenders. You can read that article here: Indefeasibility of title - legal certainty in an age of rising fraud. This article analyses the High Court of Australia’s decision in Stubbings v Jams 2 Pty Ltd [2022] HCA 6, which remains the leading authority on responsible lending practices, notwithstanding the passage of four years since judgment.

AustraliaFinance and Banking
Emma Boyce
Emma Boyce
Karunya Vetcha
Karunya Vetcha
Rezwan Attai
Rezwan Attai
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We recently examined how fraud can undermine indefeasibility and the resulting risks for lenders. You can read that article here: Indefeasibility of title - legal certainty in an age of rising fraud

This article analyses the High Court of Australia’s decision in Stubbings v Jams 2 Pty Ltd [2022] HCA 6, which remains the leading authority on responsible lending practices, notwithstanding the passage of four years since judgment. The decision confirms that lenders cannot rely on form over substance: documentary protections, including advice certificates, will not shield a lender where the transaction exploits a borrower’s vulnerability.

We also outline the practical measures lenders can implement to mitigate the risk of unconscionable conduct findings.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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