Bluestone deal

Commerce Commission action alleging mortgage lender Bluestone charged excessive fees has led to a payout for customers. Under a settlement agreement, 295 customers will share a $200,000 payout from Bluestone Mortgages NZ, Trustees Executors and TEA Custodians (Bluestone). The commission took court action in March 2009 over concerns Bluestone was charging unreasonable ‘‘deferred establishment fees’’ to customers who repaid their loans within four years. The fees were in breach of the Credit Contracts and Consumer Finance Act 2003, said the commission. Despite the payout, Bluestone has said it does not accept it broke the law and does not admit liability. The commission said it was working out how much each customer was due and would contact them regarding the settlement in the new year. Eligible borrowers are those who entered into a consumer credit contract with Bluestone between March 27 and October 13, 2006, and were charged a ‘‘deferred establishment fee’’ when they repaid their loan within the first four years.