Overview

This bill amends the Unfair Terms in Consumer Contracts Regulations 1999 to ensure that additional charges in personal financial services contracts can be assessed for fairness. It clarifies what constitutes the "main price" and allows for scrutiny of ancillary charges that may not be apparent upfront.

Description

The bill modifies the 1999 regulations by adding new clauses. Crucially, it explicitly states that the assessment of fairness for ancillary terms in personal financial service contracts will not automatically exclude the main price or subject matter of the contract.

The amendments clarify the process for determining fairness of additional charges. This includes considering whether the charge is contingent upon uncertain events and whether the consumer was likely aware of the charge before signing the contract. If a charge is dependent on uncertain events, it will not be considered part of the "main price" for the purposes of assessing fairness. The burden of proof lies on the provider to demonstrate that a charge forms part of the main price.

Government Spending

The bill is not expected to directly increase or decrease government spending. The impact will primarily be felt by financial institutions, potentially affecting their profitability, rather than incurring any direct cost to the government.

Groups Affected

The bill primarily affects:

• Financial services providers: They will face increased scrutiny of their pricing practices and may need to review their contracts to ensure compliance.
• Consumers: Consumers will benefit from greater protection against potentially unfair charges in financial services contracts.

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