Being defrauded by a third party does not, without more, constitute a special disadvantage in dealings with a lender, particularly where the borrower is commercially sophisticated, has access to independent professional advice, and the lender has warned the borrower of the suspected fraud. The equitable doctrine of unconscionable dealing requires victimisation or predatory conduct by the party against whom relief is sought; mere knowledge or belief that the other party is making a foolish decision is insufficient. A default interest rate increase of 2% per annum (from 9% to 11%) on a private loan was held not to be a penalty.
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