The Credit & Investments Ombudsman has published a Position Statement on Unconscionable Conduct.

The Position Statement describes how the CIO deals with complaints about unconscionable conduct. It sets out what it will consider when investigating such complaints, the information it will require from a consumer or financial services provider and the remedies that may be available, depending on whether the FSP is a credit provider, broker or mortgage insurer.

Some complaints may also involve conduct that is unjust, and complaints about irresponsible lending.

Although the Position Statement refers to loans and mortgages as they relate to individual consumers, the CIO’s jurisdiction in this area is not limited to loans secured by real property or to individual consumers. It will apply the same general principles to different types of financial products and also where the borrower is a small business.

The discusses unconscionable conduct in equity and under the provisions of the ASIC Act as well as the applicable industry codes and practices (MFAA, COBA, ABA).