Unconscionable conduct- what is it?

When a person is desperate to get money prior to being paid but they know in 2 weeks they will be able to access the money what do they do?
Well for some people they would suffer quietly.
Others well they go to a payday lender who they then repay when they are paid.
Apart from the interest charge no major issue in a capitalist, cruel world.

What if the person taking out the short term loan is on Centrelink payments as their main form of income and is sold consumer credit insurance. The insurance then covers if you are sick, ill or unfit for work and cannot repay the loan on time.

When consumers are sold insurance and are highly unlikely to not use the insurance or the loan conditions do not take into account the financial position of the borrower this is considered to be 'unscionable'.
The Australian Securities and Investment Commission states taht unconscionable is beyond harsh and unfair, it actually involves deliberate misconduct.

This could mean-

• Taking advantage of the other parties position (e.g CBA v Amadio 1983)
• Use of unfair influence
• Acting in good faith  (ACCC v Lux 2013)
• Unfair tactics by the stronger party

So in a recent case involving two payday lenders the Federal Court found that The Cash Store and Assistive Finance Australia had engaged in unconscionable conduct.
see Federal Court shoots down payday lender.

This case demonstrates increased enforeability, compliance to the law and the protection of the National Consumer Credit Act 2009.