Legal Talk ASIC Review
Early Termination Fees By Suzanne Roberts Practice Director, Informed Conveyancing Lawyers
FIRST CLASS LIVING
This Boyland property would have to be one of the best value properties in the area. A well presented, modern four bedroom brick home on over two acres only 10 minutes from Canungra. There are three living areas, a rumpus room and study as well as built ins in the bedrooms and two bathrooms. Other features include: • Ducted air conditioning throughout. • Floor to ceiling windows in most rooms. • Insulation in roof, ceiling and walls. • Outdoor covered entertaining area. • 2 stables. • Fully fenced with dog wire. • Remote controlled double garage. • Automatic entrance gate. • 5 bay colourbond garage. Priced at $599,000, the property is available through Aussie Lifestyle Properties. For enquiries call Monique Morcus on 5543 4889 or call in to their office at Shop 2/2 Lawton Lane, Canungra.
of
On 18th September 2012, ASIC released a report titled ‘Review of Early Termination Fees for Residential Loans entered into before 1st July 2011’. From that date, early termination fees have been prohibited on new Code regulated loans secured by residential property. However, many residential loans entered into before 1st July 2011 include a fee styled either ‘early termination fee’ or ‘deferred establishment fee’ (both called ‘exit fees’). Exit fees can still be imposed in loans regulated by the National Credit Code (NCC) which are not secured over residential property. However, exit fees for both regulated loans (regardless of whether the loan is secured by residential property or not) as well as exit fees for unregulated loans may still fall for review as unjust or unconscionable under other legislation. ASIC’s comments will also be relevant to those types of exit fees.
Deferred Establishment Fees (DEFs) were preferred to early termination fees (ETFs) by many lenders because the NCC provides that early termination fees may be found unconscionable if they exceed ‘a reasonable estimate of the credit provider’s (bank’s) reasonable loss...and costs’ whereas cost is only an element the court ‘is to have regard to’ when reviewing establishment fees. The report found that where an exit fee has been charged since 1st July 2010 the exit fee resulted in a complaint to lenders (banks) in less than 1% of cases. However, more than half of those complaints resulted in the exit fee being waived or reduced. If you feel you have been charged either a deferred establishment fee or an early termination fee which was, in your opinion, either unjust or unconscionable – please be aware, you do have the right to lodge a formal complaint with your lender/ bank.
Disclaimer: This article is intended for general information only and no person should rely on its contents. Rather they should obtain legal advice from a qualified professional person. None of the publisher, author or editors are responsible for the results of any actions taken in reliance on the information in this article and expressly disclaim all or any liability, howsoever caused, arising from or in connection with this article.
ESTATE GIVES RISE TO NEW STREET NAMES Council has signed off on the naming of 12 new roads within the Canungra Rise development on Finch Road, Canungra. The development, by Winten Property Group, consists of 298 residential lots, the first stage of which will comprise of approximately 60 lots. The estate’s streets will be named Daniels Rise, Shelly Court, Wendorf Street, Wenham Court, Karrakas Way, Malgum Drive, Piebale Way, Roxborough
Looking for your new home?
Street, Beasley Way, Seymour Drive, Wojei Rise, Bimbul Court and Knight Rise. Street names were researched by Winten Property Group before submitted to Council for approval. The inspiration for the names was drawn from 19th Century families of the early Canungra settlement and the Aboriginal names for the species of trees found at the site.
Suzanne Roberts Practice Director 92-96 Wagonwheel Road BOYLAND CANUNGRA QLD 4275
The Canungra Times Property Guide To advertise call 5543 5532
Ph: 07 5543 4996 Fax: 07 5543 5104 Mobile: 0447 060 849 E: info@informedconveyancing.com.au
www.informedconveyancing.com.au The Canungra Times, October 2012
Page 25