More than 800 customers of a consumer loans company will get back $3.3 million after they were overcharged for interest and fees, says the Commerce Commission.
The regulator believes Auckland-based Broadlands Finance is likely to breached the Fair Trading Act but has reached a settlement with the firm, which admits
no liability.
The settlement, however, means that 807 customers will get $3.3 million back, an average of $4000 each.
Broadlands, owned by Tony Radisich, mainly offers motor vehicle finance but according to the commission it charged interest and fees after it had sold repossessed property, which is banned under the Credit Repossession Act.
This law prohibits lenders from recovering more than the balance which owed after goods have been repossessed and sold.
"In the Commission's opinion, Broadlands misled its customers by representing that it had a right to continue to charge interest and fees," the regulator said today.
