Provincial receiver pursues credit agency over bad loans

The receiver of failed car finance company Provincial Finance is taking Baycorp Advantage to court after discovering millions of dollars in loans were made on the strength of incorrect information provided by the credit checking agency.

John Waller of Pricewaterhouse Coopers yesterday confirmed he had filed a civil claim in Auckland High Court against Baycorp Advantage and several other defendants, none of them Provincial Finance employees.

"We are alleging some fraud ... the claim is for some millions.

"It is principally around the application for the financing of cars," Waller said.

"There was lending undertaken on information provided which was in our view incorrect ... obviously we'll be looking to recover any monies if we are successful."

Waller said payouts to Provincial investors who were owed $300 million when the company went into receivership in June were unlikely to be increased even if the court action was successful.

He maintained his view they would get "most if not all" of their initial investment back over time.

Baycorp Advantage country director John Roberts yesterday confirmed the company had been named as a defendant in the case.

"It is alleged that as part of a larger fraud a former New Zealand Baycorp Advantage employee is accused of falsifying credit reports," Roberts said.