Loan fee guidelines issued
It has released updated draft credit fee guidelines, after the Supreme Court dismissed an appeal by Motor Trade Finance and Sportzone Motorcycles against rulings in a case brought by the commission over unreasonable fees in their credit contracts.
They were found to have breached the Credit Contracts and Consumer Finance Act.
“Now the final judgment in the MTF/Sportzone case has been issued the commission is able to consult with the credit community on fees guidelines,” commissioner Anna Rawlings said.
“These guidelines aim to clarify how lenders should approach the task of setting credit fees. They also provide guidance on the limitations that apply to the fees lenders may charge. We recognise it has been some time since our 2010 draft guidelines and that lenders are keen to understand their obligations and our approach to enforcement, so we are pleased to be able to issue the draft guidelines for consultation today. We look forward to hearing feedback on the draft.”
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