The New Zealand Commerce Commission released an interesting press release on the 26th of July that relates to Budget Loans Limited pleading guilty to 34 breaches of the Fair Trading Act.
“Consumer legislation such as the Credit (Repossession) Act and the Credit Contracts and Consumer Finance Act provide important protection to lenders and borrowers alike. All lenders need to ensure that their business practices and contracts comply with the relevant consumer legislation, as failure to do so means businesses run the risk of breaching the Fair Trading Act,” said Graham Gill.
Budget Loans has reversed or refunded over $400,000 of the approximately $500,000 of overcharged interest and fees. The company has agreed to reverse or refund the remainder of the overcharged interest and fees as well. The Court recognised this reparation in setting a fine for the offending.
During the Commission’s investigation Budget Loans also voluntarily reversed or refunded an additional $571,000 to its debtors in relation to credit fees that were not the subject of the current charges.