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Challenging unfair terms in financial contracts

We can challenge firms that use unfair terms in their standardised customer contracts. Standardised customer contracts are contracts that haven’t been individually negotiated between the firm and you, the customer.

What might be an unfair term?

An unfair term may, for example:

  • allow the firm to change the terms of the contract, without telling you why or without giving you notice as soon as possible so you can leave the contract immediately;
  • bind you to hidden terms;
  • exclude or limit your legal rights unfairly; or
  • charge you a disproportionately large sum if you don’t fulfil any of your obligations under the contract.

These are just a few examples of terms that could be unfair. However, a term is not necessarily unfair just because it looks like one of these. It depends on the precise details of the contract as a whole. You can see some terms that we’ve found to be unfair at Product news.

What can we do?

We can investigate complaints about terms in the following types of financial services contracts:

  • mortgages and the selling of mortgages;
  • insurance and the selling of insurance;
  • bank, building society and credit union savings accounts;
  • pensions;
  • investments; or
  • long-term savings.

Once we’ve investigated a complaint and we think a term is unfair, we may ask the firm to stop using it and to change it. You can see some of the terms we’ve found to be unfair at Product news, so check it out.

If you think you have an unfair term in your contract, you can report it to us - see Reporting unfair contract terms.

What can't we do?

  • We can’t resolve individual disputes. You will first need to complain to the firm – see Making a complaint.
  • We don’t have powers to compensate you if you have suffered loss because of an unfair contract term. Again, you will need to complain to the firm - see Making a complaint.

We don’t deal with complaints about contracts concerning personal loans, hire purchase, credit cards or other credit products. The Office of Fair Trading (OFT) deals with these. You can contact them through Consumer Direct – see Related links.

We can't assess the fairness of core terms unless the term is unclear. Core terms include terms that set out the price or the product or service being supplied.

Reporting unfair contract terms >