Unfair exit fees on home loans illegal from Thursday

Tough new regulations that give the corporate regulator, ASIC, the power to take action against unfair or unconscionable mortgage loan exit fees will come into effect on Thursday July 1 2010.

The National Australia Bank welcomed ‘the tough new laws’ which would aid consumers and lenders that charged lower rates than their competitors.

After July 1, a borrower can complain to their mortgage lender and to an external complaint service about their high exit fees. They can also complain to ASIC and/or take the matter to court.