ASIC forces a $3m refund to mortgage customers

by Caroline Dann20 Jul 2012

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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COMMENTS

  • by Scott Beattie 20/07/2012 10:40:54 AM

    What about clawbacks that resultes from clients refinancing due to their excessive rate hikes??
    Not going to happen, but in a perfect wold.... :)

  • by Glenn Haigh 31/08/2012 4:41:56 PM

    ASIC findings on RHG fees for Discharge and Termination of mortgages unjust(see article 20/7) resulted in refunds but unfortunately only to regulated loans, unregulated loans not included, surely these fees are "unjust" for the investors as well, who will stand up for them.