KEY POINTS:
'Solid as... I'd say!" That's how Colin "Pinetree" Meads described Provincial Finance before it went into receivership in 2006.
The All Black legend is among celebrities to endorse finance companies as the sector's reputation nosedived - with about 24 firms collapsing or running into serious problems in two years.
Former New Zealand cricketer John Morrison regularly extolled the virtues of Wellington finance company St Laurence, sponsor of his Radio Sport cricket show, until the company announced 12 days ago it had stopped lending ahead of a likely default and was withdrawing its prospectus.
And former TV One newsreader Richard Long has become the voice of Hanover Finance after narrating its regular spot accompanying the channel's nightly weather update.
Morrison was known for playing a straight bat on the field - and it's no different now.
Asked if he had any misgivings about promoting a finance company which has run into trouble, he replied: "You've got to be realistic. Newspapers, just as TV and radio, make a living out of advertising. Obviously things have changed dramatically. Hindsight is a wonderful science. At the time I believed [St Laurence] was in a very stable position. I had no reason to believe otherwise. I would never want to be part of anything which led to people losing money."
Morrison said he had known St Laurence chairman Kevin Podmore for many years and believed he would do everything he could to help the company's investors.
He had spoken to Podmore as part of his radio show and supported the company with on-air comments as "added value" to their sponsorship deal.
"It's sad in many ways. Nobody likes to see anybody lose money. St Laurence have moved quickly and more responsibly than many of them."
Meads, who promoted Provincial Finance before it went into receivership with $300 million invested by 14,000 debenture holders, said the outcome was sad for everyone.
"We obviously lost some money with them, so I regret that. I feel sorry for the people involved, they were a great company. We met them before we ever agreed to do a promotion. They were salt of the earth."
Asked if he felt a responsibility when his name was attached to the company, Meads replied: "Dead right. It's one of those things.
"You do it in good faith. Because it was Colin Meads, people put their money into the company."
He said he would be wary about getting involved in anything similar again, even though investors had got most of their money back over the past two years.
"It didn't make me feel good at all."
Long's Hanover ad was last month criticised by the Advertising Standards Authority. Despite being New Zealand's fourth largest finance company, Hanover's claim to be able to withstand "any conditions" was misleading, the authority said.
Long said adverts for finance companies should be viewed no differently to those for other products. Believing people invested in companies solely on the strength of celebrity endorsement "underestimated" their intelligence.
Asked if he thought celebrities had a responsibility towards investors when promoting a finance company, he replied: "Responsibility is not the right word. If you believe a company to be a well-run company, why would you say no? When I agreed to go with Hanover, no finance company had collapsed. We are now in very abnormal conditions."
The head of Massey University's College of Business, Larry Rose, said investors should do their homework.
"It's fine to be attracted to a product if you like Colin Meads, but you have to realise he is not a financial expert. Consumers have to realise, especially with complex financial products, if they don't have the expertise themselves, they really need to get professional advice.
Rose said the celebrities weren't to blame. "They will feel bad... there is probably no personal liability."
