KS v Prime Capital Securities Pty Ltd (No 5)

[2026] ACTSC 10

Supreme Court of the ACT29 January 2026

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Interrogate

Catchwords

1. Consumer Protection
2. › Financial services
3. › Statutory unconscionability
4. › System of conduct or pattern of behaviour
5. › Private lending through broker intermediaries
6. › Whether system designed to avoid consumer protections was unconscionable
7. › Australian Securities and Investments Commission Act 2001 (Cth), ss 12CB, 12CC, 12GM
1. Equity
2. › Unconscionable conduct
3. › Knowledge requirement
4. › Whether lender had knowledge of borrower's special disadvantage
5. › Where lender dealt only through broker intermediary
6. › Whether broker's knowledge imputable to lender
7. › Whether financial pressure alone constitutes special disadvantage
1. Consumer Protection
2. › National Credit Code
3. › Borrowers and guarantors
4. › Whether guarantor described as 'principal debtor' in loan agreement is a 'debtor' under the Code
5. › National Consumer Credit Protection Act 2009 (Cth), Sch 1, ss 3, 5
1. Consumer Protection
2. › Financial services
3. › Remedies for unconscionable conduct
4. › Interest rate applicable when loan agreement set aside
5. › Whether Reserve Bank cash rate or court rate applies
6. › Australian Securities and Investments Commission Act 2001 (Cth), s 12GM

Quick Take

A private lender's system of lending through broker intermediaries that is designed to avoid the National Credit Code by lending to artificially interposed corporate entities, while insulating the lender from knowledge of borrowers' circumstances and providing brokers with strong financial incentives to place loans, constitutes statutory unconscionable conduct under s 12CB of the ASIC Act even where the lender lacks knowledge of any individual borrower's special disadvantage.