Sep92018 by Connor JamesNo Comments
Unfair Contract Terms

Unfair Contract Terms

Financial Services
In March 2018, the Australian Securities and Investment Commission (ASIC) published REP 565 (found here: https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-565-unfair-contract-terms-and-small-business-loans/), which outlines changes to small business loan contracts made by the big four banks to comply with the unfair contract term law. This report also provides guidance to the broader small business lending industry. On Friday, ASIC announced that Prospa Advance Pty Ltd (Prospa) had changed the terms of its small business loan contract to address potential non-compliance with the unfair contract terms provisions of the ASIC Act. Changes agreed Prospa agreed to make the following changes: to the early repayment clause so that borrowers are able to repay the loan early without Prospa’s consent. Further, removing Prospa’s absolute discretion whether or not to provide a discount for prepayment. to the unilateral variation clause…
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Oct52017 by Connor JamesNo Comments
Unfair contract terms

Unfair contract terms

Consumer, Uncategorized
UPDATE: In the JJ Richards matter the Federal Court has declared by consent that eight of the terms in the contract were unfair contract terms. The unfair terms are set out below. See ACCC MR 176/17 The Australian Competition and Consumer Commission (ACCC) has recently instituted two proceedings in relation to unfair contract terms. These are the first proceedings instituted by the ACCC under the new laws that protect small businesses from unfair contract terms. JJ Richards JJ Richards & Sons Pty Ltd is one of the largest waste management companies in Australia. The unfair terms: binding customers to subsequent contracts unless they cancel the contract within 30 days before the end of the term; allowing JJ Richards to unilaterally increase its prices; removing any liability for JJ Richards where its performance…
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