ASIC had recently "released a report setting out the details of the changes made by the big four banks to remove unfair terms from their small business loan contracts of up to $1 million."
Their report, Unfair contract terms and small business loans, provides guidance to both bank and non-bank lenders about "compliance with the unfair contract terms laws as they relate to small business".
ASIC Deputy Chair Peter Kell said, 'The UCT report provides further guidance to help banks and other lenders ensure that their small business loans are fair, and do not breach the rules prohibiting unfair contract terms,' by identifying the types of terms in loan contracts that raise concerns, by providing details about the specific changes that have been made by the banks to ensure compliance with the law, and by providing general guidance to lenders with small business borrowers to help them assess whether loan contracts meet the requirements under the unfair contract terms law.
To read more, or download the report, visit the ASIC website here.
