ASIC has forced RHG Mortgage Corporation to refund mortgage customers their discharge and termination fees, to the value of $3.3m.
Formlerly known as RAMS
Mortgage Corporation Ltd, the group is no relation to the current RAMS
brand, and was forced to refund customers after ASIC raised concerns over the price of its discharge and termination fees.
The refund applies to home loans terminated since 1st July 2010.
ASIC said the fees were "unconscionable or unjust under the National Credit Code", mainly in relation to the fact some of RHG's fees did not reduce over time or were increased.
ASIC Commissioner Peter Kell
said it had been monitoring early termination fees to ensure they were 'justified."
He added an ASIC review of termination fees - the result of several years of study - will be published before the end of 2012.
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