Regulator loses case against finance co

The Commerce Commission has lost a court case against Auckland firm Avanti Finance in a decision which may have implications for other lenders.

The commission alleged that Avanti Finance, one of New Zealand's largest lenders to low-income borrowers, charged excessive fees to borrowers who repaid loans early.

A spokesman for the commission yesterday confirmed that the Auckland District Court's judgment in the case went in Avanti's favour.

"We're currently considering the judgment as to what's the most appropriate thing to do next."

It was understood that the Avanti action was something of a test case. It was also understood to be the first time a financier defended charges brought by the watchdog under the Credit Contracts and Consumer Finance Act.