Ilaisaane Malupo of Nane Loans admits illegally providing personal loans to Tongan community

An unregistered Auckland lender who charged clients interest rates of up to 15% per week and threatened to expose borrowers struggling with payments on Facebook has admitted to illegally providing personal loans.

Ilaisaane Malupo, trading as Nane Easy Loan Finance Services NZ (Nane Loans), issued loans to members of the Tongan community in South Auckland, the Commerce Commission said.

Commerce Commission chairwoman Anne Callinan said interest would double if borrowers failed to repay loans within 28 days, and late fees of up to $10 per day would also be charged.

“This put some borrowers, who were already struggling financially, in an even more difficult position,” Callinan said.

“Some would sell sentimental possessions or miss rent payments to keep up with repayments.”

Callinan said in some cases, Malupo threatened that borrowers who fell behind on repayments would be publicly exposed on Facebook or other Tongan media sites.

The Commerce Commission is working to contact affected borrowers who could be entitled to financial compensation.

“Malupo failed to keep accurate records, and destroyed others, meaning we do not have the details of all affected borrowers,” Callinan said.

“This is why the commission is taking the step of appealing to the public to get in contact with us if they, or someone they know, borrowed from Malupo.”

One of the charges was brought against Malupo under the Financial Service Providers (Registration and Dispute Resolution) Act (FSPA), which requires that all consumer lenders must be registered to provide consumer credit.

The Commerce Commission said Malupo did not obtain registration despite repeated prompts and guidance from the commission and continued to lend, knowingly in breach of the FSPA.

Affected borrowers can email contact@comcom.govt.nz with “Nane Loans borrower” in the subject line, or call the commission directly on 0800 943 600.