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ASIC releases report into mortgage brokers
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A report on the mortgage broking industry, prepared by the Consumer Credit Legal Centre NSW (Inc) (CCLC) and released by the Australian Securities and Investments Commission (ASIC), has found that while consumers are increasingly using brokers, consumers who use the mortgage broking industry can face problems that include:

poor advice, with the increased costs of the inappropriate loans that might result;
inadequate disclosure of fees and commissions by some brokers;
inconsistent documentation from brokers;
uncertainty about the nature and price of the service;
in a small number of cases, fraudulent activity such as manipulating loan applications.

''There is also a need for clarity as to whether brokers are acting for consumers or are really agents for lenders', Mr Kell said.

In response to the report findings, ASIC will be increasing its information to consumers about the best ways to choose and deal with brokers. Download a new ASIC guide to 'Using a Mortgage Broker'

 
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New Litigation Laws
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The Queensland Government has introduced new laws into Parliament as part of a package dealing with public liability insurance reforms.

Summary of reforms in the Civil Liability Bill 2003:

• A $250,000 cap on general damages;
• Proportionate liability for non-personal injuries claims where damages exceed $500,000.
• No liability for failure to warn of obvious risks;
• No liability for injuries arising from obvious risks in the case of recreational activities;
• No liability in cases where the injured person was engaged in criminal activity which contributed to the risk of injury. This will mean that where a court determines, on the balance of probabilities, that a person was engaged in a criminal act, the person will not be entitled to claim damages;
• Restricted claims where a person’s intoxication contributed to their personal injury. This will involve the mandatory reduction of damages to a claimant who is intoxicated, and removal of any special duty owed to people simply because they are intoxicated; and
• Better protection for local councils against actions stemming from their policies or resource allocation;
• Limits on the time period for doctors to be notified of potential claims; and
• A change in the standard of care for professional groups, including doctors, to protect against liability for acts performed in accordance with a respected body of professional opinion

When passed the bill will further clarify the laws of negligence by:

• Codifying the test for determining negligence, and in particular provide that a person is only required to act to prevent a risk that is “not insignificant”;
• Codifying legal principles in determining whether defendant actually caused the plaintiff’s injury;
• Codifying the test for determining contributory negligence and allowing damages to be reduced by 100%;
• Limiting the scope of liability of public authorities by allowing the Courts to take into account their financial resources and other factors;
• Disallowing pre-judgement interest on damages for non-economic loss.