You are using an older browser version. Please use a supported version for the best MSN experience.

Napier loan company banned from lending

NZ Newswire logoNZ Newswire 24/05/2017

Napier loan company Cash to You Loans Ltd has been banned indefinitely from operating as a lender.

The ban comes after the company charged borrowers unreasonable fees and excess interest, and failed to disclose correctly fees charged, the Commerce Commission says.

Cash to You Loans was sentenced in Napier District Court on eight charges under the Credit Contracts and Consumer Finance Act 2003.

It was also fined $28,000, which was reduced on account of its financial position. It has credited more than $25,000 to consumers.

The company, of which Noel Nicholls is sole director, provides personal loans between $100 and $3500, and the charges related to a three-year period to March 31, 2015.

The commission began an investigation after a complaint from a budget advisor.

It said the lender's contracts did not give any details of a repayment waiver fee which was charged at up to 15 per cent of the loan amount.

The company charged borrowers default interest of 35 per cent when the loan agreement stated that no interest would be charged on the event of default.

It also charged borrowers a fee of up to $60 for registering security items on the Personal Property Security Register when it did not register any security items.

image beaconimage beaconimage beacon