Napier finance company charged
Napier finance company Cash to You Loans Ltd has been accused by the Commerce Commission of charging 35 per cent default interest without informing customers.
The commission alleges that Cash to You breached the Credit Contracts and Consumer Finance Act 2003 (CCCFA) on various loans it provided between April 1, 2012, and March 31, 2015.
Cash to You is charged with failing to properly disclose to borrowers a repayment waiver fee of up to 15 per cent of the loan.
It is also alleged to have charged some borrowers unreasonable credit fees, and default interest of 35 per cent when the loan documents provided for no default interest.
The company appeared in the Napier District Court last week on 32 charges brought by the commission relating to its lending business. No plea was entered and the company is due to appear again next month.
The firm’s sole director, Noel Nicholls, declined to comment.
In a statement released by the commission it said it had taken six cases against lenders under the CCCFA to court this year.
It had also reached two settlements with lenders. Christchurch motor vehicle lender Dealer Finance Ltd agreed to refund at least $440,000 to customers who were overcharged interest.
Payday lender Cash in a Flash also agreed to refund customers over $120,000 after the Commission warned it was likely to have breached consumer credit laws.
The CCCFA helps protect consumers when they are borrowing money. It helps ensure consumers can make informed choices and know what they’re agreeing to when they take out a loan or buy on credit.
It requires lenders to disclose terms and fees under a credit contract, and regulates the fees and interest that can be charged.