Take the Law: Exorbitant default rate “unconscionable”

This discussion focuses on the risks of high interest rates in a volatile property market, especially for those facing negative equity. A court case highlighted the issue of excessive default interest rates (7.5% monthly!) which were deemed unconscionable. While the borrower still faced a high rate (5% monthly), the case shows that legal action can be taken against unfair lending practices. The discussion also reassures that standard bank loans generally have reasonable rates, implying that borrowers meeting their obligations shouldn’t face such extreme interest charges.