Bendigo and Adelaide Bank is "at least in part responsible for its own problems" in having a low doc loan set aside, the Supreme Court of New South Wales ruled last week.The case turned on a guarantee provided by two migrant parents on a A$244,00 loan taken out by their son to fund his Sydney business.Combined Home Loans acted as mortgage broker on the loan in 2003."The method of business [the bank] … and through its agent CHL … adopted" meant "it saw the commercial advantages as outweighing the 'low doc' risks," justice Robert Hulme said.The court agreed that the son had effectively fooled his parents - who did have business experience - into signing loan documents.There was "a substantial risk that in effecting the transaction [the son] would wrong the defendants," the judge wrote."The plaintiff, by its agents [ie, the mortgage broker] knew sufficient of the factors for it to have recognised or been aware of the risk. "The defendants were accordingly at a special disadvantage and for the [bank] to seek to now take advantage of their liability is unconscionable."The issue of unconscionability is one between the [bank] and the defendants," the judge said in his judgment."I am not persuaded that the defendants or their property should be burdened in the interests of the party guilty of unconscionable conduct, even if that conduct was inspired in the first instance by [the actions of the defendant's son].