Fed: Consumers to be able to challenge 'unfair' contract terms

AAP General News (Australia)
04-19-2009
Fed: Consumers to be able to challenge 'unfair' contract terms

New laws being considered by the federal government would allow consumers to challenge
contract terms they feel are unfair .. including exit fees.

Pressure is mounting for banks to do more to win back the trust of the community after
recent refusals to pass on any substantial interest rate cuts.

Assistant Treasurer CHRIS BOWEN says consumers are often frustrated by high penalty
or bank fees .. and may be able to fight back using the proposed laws.

Under the provision .. a term will be deemed unfair when it causes a significant imbalance
in the parties' rights and obligations arising under the contract .. and is not reasonably
necessary to protect the supplier's legitimate interests.

AAP RTV srj/tm

KEYWORD: BANKS (CANBERRA)

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