Unfair Mortgage Clauses Challenged By Consumer Rights Watchdog

The Office for Competition and Consumer Protection (OCCP) has challenged certain clauses used by 19 banks in their mortgage documents.

The OCCP conducted an audit of the banks' mortgage documentation to identify irregularities and eliminate terms which were unfavourable for consumers. It inspected more than 300 standard form agreements, rules and regulation, tables of fees and charges and loan insurance agreements.

Following the audit, the OCCP challenged over 40 contractual clauses, including those which:

• indicated only the minimum level of fees which could be charged for maintaining a loan
  
  
• reserved an unlimited right to examine the building at the lender's cost