All Topics / Finance / Regulated Loan

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of intrinsicintrinsic
    Member
    @intrinsic
    Join Date: 2004
    Post Count: 7

    Hi,

    Dumb question here.

    What is the difference between a regulated and non regulated loan?

    Is a “regulated loan” regulated by the consumer credit act, etc?

    If so what about a non-regulated loan.

    Thanks in advance.

    Profile photo of petebellpetebell
    Member
    @petebell
    Join Date: 2004
    Post Count: 38

    Hi Intrinsic,

    Yes a regulated loan is “regulated” by the UCCC, (Uniform Consumer Credit Code). Unregulated refers to loans for Business or Investment purposes.
    There is a certain level of protection available to consumers under the UCCC, for regulated loans. If you are borrowing for business or investment purposes, it is assumed that you know what you are doing, so you get less protection. There are some loans that are availale only as regulated (eg most 100% LVR loans) and some that are only available as unregulated (eg self employed low doc at 65%LVR)
    You have to sign a declaration when getting an unreg loan saying that it is primarily (50% or more) for bus/inv purpose, waving your rights under the UCCC.

    Pete

    Profile photo of intrinsicintrinsic
    Member
    @intrinsic
    Join Date: 2004
    Post Count: 7

    Thanks for that Pete.

    Cheers

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.