Proposal to extend unfair contract terms to business to business loans
The recent meeting of the Ministers for Consumer Affairs have noted that they will commence accepting submission about extending the unfair contract terms within the Australian Credit Laws to business to business contracts, the consequences of this would be significant for both lenders and small businesses alike.
For lenders in particular this may result in significant changes to their lending processes, the ability to recover debts would be reduced and more processes would need to be followed. This could potentially include requirements to offer hardship, external dispute resolution and follow strict fee and charges provisions. Understanding the licencing regime will help position your business ahead of the pack.
If you are a business lender, now is the time to get your lending processes in order, ASIC have already highlighted that they are heavily reviewing the Australian Credit landscape, with reviews mooted into unregulated lenders and looking at responsible lending. We offer a compliance review and licencing service, allowing you to focus on your business.