Latest news with #CCCFA
Scoop
12-06-2025
- Business
- Scoop
ComCom Prosecutes Unregistered Lender Who Targeted Vulnerable Consumers
Press Release – Commerce Commission The Commission has prioritised enforcement action against lenders who have not met their obligations under the CCCFA. The Commission is particularly focussed on lenders who provide credit to vulnerable consumers in New Zealand. The Commerce Commission has filed criminal charges in the Auckland District Court against an unregistered and uncertified lender, Ilaisaane Malupo, trading as Nane Easy Loan Finance Services NZ (Nane Loans). The Commission alleges Ms Malupo provided personal loans illegally to members of the Tongan community in South Auckland from March 2024. Associate Commissioner Joseph Liava'a says when lenders are identified operating outside of the law, the Commission will act swiftly to shutdown these operations to ensure that consumers are protected when borrowing money or buying goods on credit. Under the Financial Service Providers (Registration and Dispute Resolution) Act and the Credit Contracts and Consumer Finance Act (CCCFA), all lenders must be registered and certified in order to provide consumer credit. 'Often these kinds of lenders are a last resort for people who are struggling to borrow from reputable lenders. Many people who borrowed from Ms Malupo were already under financial pressure and on low incomes, so irresponsible lending could have had a big impact on borrowers and their families,' Mr Liava'a says. 'Some of the borrowers indicated they needed to borrow money to buy food or pay off other loans,' Mr Liava'a says. Alongside the lack of certification, the Commission alleges Ms Malupo's terms included high interest rates of up to 15 per cent charged on a weekly basis, which would double if borrowers failed to repay the loans within 28 days; and late payment fees of up to $10 per day. 'In order to keep up with payments some borrowers resorted to selling their sentimental possessions or missing rent payments,' Mr Liava'a says. Ms Malupo operated her business on social media and in some cases threatened that borrowers who failed to repay their debt would be 'named and shamed' on Facebook or other Tongan media sites until repayment was made. 'Public shaming is never ok and could put borrowers in a vulnerable position to avoid being called out for their friends and family to see,' Mr Liava'a says. The Commission has prioritised enforcement action against lenders who have not met their obligations under the CCCFA. The Commission is particularly focussed on lenders who provide credit to vulnerable consumers in New Zealand. Background The Commission launched an investigation into Ilaisaane Malupo after receiving enquiries, including from a financial mentor about Ms Malupo's lending practices which were causing harm to borrowers. Whilst the Commission is continuing its investigation into further breaches of the CCCFA which are likely to have occurred, the Commission's immediate priority was to stop Ms Malupo from entering new loans or enforcing any existing loans. Ms Malupo has been charged (4 June 2025) with: Criminal charges under section 11 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 for providing a financial service without being registered, the penalty of which is 12 months' imprisonment or a fine not exceeding $100,000; and Criminal charges under section 103(2) of the Commerce Act 1986 for attempting to deceive or knowingly mislead the Commission on any matter before it, the penalty of which is a fine not exceeding $100,000. All lenders must be certified under Part 5A of the Credit Contracts and Consumer Finance Act 2003 by the Commerce Commission. To gain certification, lenders must satisfy the Commission that those operating the business are financially sound, honest, reputable, reliable and competent to do the job.
Scoop
12-06-2025
- Business
- Scoop
ComCom Prosecutes Unregistered Lender Who Targeted Vulnerable Consumers
Press Release – Commerce Commission The Commission has prioritised enforcement action against lenders who have not met their obligations under the CCCFA. The Commission is particularly focussed on lenders who provide credit to vulnerable consumers in New Zealand. The Commerce Commission has filed criminal charges in the Auckland District Court against an unregistered and uncertified lender, Ilaisaane Malupo, trading as Nane Easy Loan Finance Services NZ (Nane Loans). The Commission alleges Ms Malupo provided personal loans illegally to members of the Tongan community in South Auckland from March 2024. Associate Commissioner Joseph Liava'a says when lenders are identified operating outside of the law, the Commission will act swiftly to shutdown these operations to ensure that consumers are protected when borrowing money or buying goods on credit. Under the Financial Service Providers (Registration and Dispute Resolution) Act and the Credit Contracts and Consumer Finance Act (CCCFA), all lenders must be registered and certified in order to provide consumer credit. 'Often these kinds of lenders are a last resort for people who are struggling to borrow from reputable lenders. Many people who borrowed from Ms Malupo were already under financial pressure and on low incomes, so irresponsible lending could have had a big impact on borrowers and their families,' Mr Liava'a says. 'Some of the borrowers indicated they needed to borrow money to buy food or pay off other loans,' Mr Liava'a says. Alongside the lack of certification, the Commission alleges Ms Malupo's terms included high interest rates of up to 15 per cent charged on a weekly basis, which would double if borrowers failed to repay the loans within 28 days; and late payment fees of up to $10 per day. 'In order to keep up with payments some borrowers resorted to selling their sentimental possessions or missing rent payments,' Mr Liava'a says. Ms Malupo operated her business on social media and in some cases threatened that borrowers who failed to repay their debt would be 'named and shamed' on Facebook or other Tongan media sites until repayment was made. 'Public shaming is never ok and could put borrowers in a vulnerable position to avoid being called out for their friends and family to see,' Mr Liava'a says. The Commission has prioritised enforcement action against lenders who have not met their obligations under the CCCFA. The Commission is particularly focussed on lenders who provide credit to vulnerable consumers in New Zealand. Background The Commission launched an investigation into Ilaisaane Malupo after receiving enquiries, including from a financial mentor about Ms Malupo's lending practices which were causing harm to borrowers. Whilst the Commission is continuing its investigation into further breaches of the CCCFA which are likely to have occurred, the Commission's immediate priority was to stop Ms Malupo from entering new loans or enforcing any existing loans. Ms Malupo has been charged (4 June 2025) with: Criminal charges under section 11 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 for providing a financial service without being registered, the penalty of which is 12 months' imprisonment or a fine not exceeding $100,000; and Criminal charges under section 103(2) of the Commerce Act 1986 for attempting to deceive or knowingly mislead the Commission on any matter before it, the penalty of which is a fine not exceeding $100,000. All lenders must be certified under Part 5A of the Credit Contracts and Consumer Finance Act 2003 by the Commerce Commission. To gain certification, lenders must satisfy the Commission that those operating the business are financially sound, honest, reputable, reliable and competent to do the job.
Scoop
12-06-2025
- Business
- Scoop
ComCom Prosecutes Unregistered Lender Who Targeted Vulnerable Consumers
The Commerce Commission has filed criminal charges in the Auckland District Court against an unregistered and uncertified lender, Ilaisaane Malupo, trading as Nane Easy Loan Finance Services NZ (Nane Loans). The Commission alleges Ms Malupo provided personal loans illegally to members of the Tongan community in South Auckland from March 2024. Associate Commissioner Joseph Liava'a says when lenders are identified operating outside of the law, the Commission will act swiftly to shutdown these operations to ensure that consumers are protected when borrowing money or buying goods on credit. Under the Financial Service Providers (Registration and Dispute Resolution) Act and the Credit Contracts and Consumer Finance Act (CCCFA), all lenders must be registered and certified in order to provide consumer credit. 'Often these kinds of lenders are a last resort for people who are struggling to borrow from reputable lenders. Many people who borrowed from Ms Malupo were already under financial pressure and on low incomes, so irresponsible lending could have had a big impact on borrowers and their families,' Mr Liava'a says. 'Some of the borrowers indicated they needed to borrow money to buy food or pay off other loans,' Mr Liava'a says. Alongside the lack of certification, the Commission alleges Ms Malupo's terms included high interest rates of up to 15 per cent charged on a weekly basis, which would double if borrowers failed to repay the loans within 28 days; and late payment fees of up to $10 per day. 'In order to keep up with payments some borrowers resorted to selling their sentimental possessions or missing rent payments,' Mr Liava'a says. Ms Malupo operated her business on social media and in some cases threatened that borrowers who failed to repay their debt would be 'named and shamed' on Facebook or other Tongan media sites until repayment was made. 'Public shaming is never ok and could put borrowers in a vulnerable position to avoid being called out for their friends and family to see,' Mr Liava'a says. The Commission has prioritised enforcement action against lenders who have not met their obligations under the CCCFA. The Commission is particularly focussed on lenders who provide credit to vulnerable consumers in New Zealand. Background The Commission launched an investigation into Ilaisaane Malupo after receiving enquiries, including from a financial mentor about Ms Malupo's lending practices which were causing harm to borrowers. Whilst the Commission is continuing its investigation into further breaches of the CCCFA which are likely to have occurred, the Commission's immediate priority was to stop Ms Malupo from entering new loans or enforcing any existing loans. Ms Malupo has been charged (4 June 2025) with: Criminal charges under section 11 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 for providing a financial service without being registered, the penalty of which is 12 months' imprisonment or a fine not exceeding $100,000; and Criminal charges under section 103(2) of the Commerce Act 1986 for attempting to deceive or knowingly mislead the Commission on any matter before it, the penalty of which is a fine not exceeding $100,000. All lenders must be certified under Part 5A of the Credit Contracts and Consumer Finance Act 2003 by the Commerce Commission. To gain certification, lenders must satisfy the Commission that those operating the business are financially sound, honest, reputable, reliable and competent to do the job. An up-to-date database of certified lenders can be found here: The Commission has released a 'quick guide to borrowing money' to assist borrowers on what to expect from a lender here:
1News
29-05-2025
- Business
- 1News
National accused of putting needs of banks before everyday Kiwis
The National Party is being accused of putting the needs of banks before everyday Kiwis after introducing legislation that could mean two big Australian-owned lenders avoid paying millions of dollars in refunds. One customer said the amendment to lending laws would allow the banks to get off "scot-free" while the minister in charge said it simply allowed the courts to have more discretion in settling disputes. The Credit Contracts and Consumer Finance Act (CCCFA) passed its first reading in Parliament last week and included a retrospective amendment relating to consequences for historical disclosure breaches by lenders. An investigation by the Commerce Commission had found two banks did not disclose the necessary information regarding customer loans. It meant the banks were potentially liable to refund millions of dollars in fees and interest. 'We should just be able to trust our bank' ADVERTISEMENT Lawyer Scott Russell, acting on behalf of those taking the class action, said the omission regarded "core business" for the banks. 'It's simple stuff. It's disclosure rules that allow ordinary New Zealanders to understand their financial position,' Russell said. Anthony Simons, a small business owner, was among the 170,000 customers who' took legal action against ANZ and ASB banks. 'We're just a hardworking Kiwi family trying to pay off our mortgage, struggling sometimes, and we should just be able to trust our bank that they're going to do the right thing in disclosing the right information,' Simons said. But, after four years battling through the courts, the Government last week passed the first reading of the legislation which changed the rules — retrospectively. Banks entitled to 'judicial fairness' – Minister The Minister for Commerce and Consumer Affairs, Scott Simpson, said the bill before Parliament did not affect the class action. ADVERTISEMENT 'What it does is it gives the courts the ability to use their discretion about what will be a fair and equitable outcome to the case,' he said. 'Banks, no matter what you may or may not think of them, are surely entitled to the same judicial fairness as any other entity or person.' A Cabinet paper by the minister released last month highlighted the class action against the banks, adding that "addressing these concerns through retrospective legislation is likely to attract criticism". 'Well, there will be criticism because it is retrospective and retrospective legislation is unusual but not completely unknown in our political system,' Simpson said. Russell claimed it was unfair. 'We've taken it right through to the Supreme Court and, right where we're getting to crunch time, the banks have contacted their mates in the National Party who have agreed to potentially wipe these refunds. It's hundreds of millions of dollars,' he said. Possible changes 'don't take any rights away from consumers' – banks ADVERTISEMENT ANZ and ASB Bank said the proposed amendments to the bill would not halt the current class action – or future cases. In a statement to 1News, ANZ said the proposed amendments "will not stop the current class action progressing, nor will it prevent potential future cases". "They will simply confirm that when considering these cases, the court has discretion to decide what a fair outcome should be. This change does not remove the rights and protections of consumers.' ASB Bank, meanwhile, told 1News that the potential changes "don't take any rights away from consumers, and will not prevent the current court case, or any future cases, from proceeding". "They simply clarify a confusing piece of legislation and confirm that the court has jurisdiction to decide on an outcome that is fair and reasonable.' Simpson added that, currently, for cases that occurred between 2015 and 2019, the courts could only hand down one penalty. 'And that is a full refund of all interest and all fees, no matter how small or minor the error or omission was,' he said. ADVERTISEMENT But Russell said penalties "are clear under the legislation". "All of a sudden, those penalties are being wiped out and replaced with something that's not clear which is what is a reasonable penalty.' While all three coalition parties supported the bill at its first reading, NZ First had concerns about the retrospective aspect and wanted to hear more official advice and public feedback before deciding if it would back the bill entirely. The issue would now be considered by a Parliamentary select committee.
RNZ News
28-05-2025
- Business
- RNZ News
El Cheapo Cars to pay customers $340k after failing to give key loan information
Photo: Supplied/ Pixabay CC 0 Car dealer El Cheapo Cars will have to pay more than $340,000 to customers after pleading guilty to seven charges under the Credit Contracts and Consumer Finance Act (CCCFA). The charges were filed by the Commerce Commission and related to El Cheapo Cars' failure to give borrowers key information about their loans. It was also fined $115,000. Commerce Commission general manager for competition, fair trading and credit, Vanessa Horne, said the commission was particularly interested in protecting vulnerable consumer groups. "One of the commission's enforcement priorities is to take action where we consider motor vehicle finance lenders have not met their obligations under the CCCFA. We are particularly focussed on motor vehicle lenders who are providing credit to vulnerable consumers. "For many Kiwis the purchase of a car is one of the biggest financial commitments they will make. The CCCFA is there to protect consumers when they borrow money or buy goods on credit, and under the CCCFA, consumers have a right to be provided upfront information about any changes to their loan." El Cheapo Cars breached its variation disclosure obligations under the CCCFA when providing personal and vehicle finance to borrowers between 2015 and 2021. In his sentencing notes, Judge Sainsbury said disclosure obligations were among the most fundamental protections under the CCCFA. "Particularly those related to ensuring consumers are aware of their rights and obligations under the consumer credit contract." Horne said the decision was a win for consumers and borrowers, who could be entitled to compensation. El Cheapo will have to pay $341,931.46 to affected borrowers. "This case should send a strong signal to motor vehicle financiers that non-compliance with disclosure obligations will not be tolerated. "Transparency and accountability are fundamental to responsible lending and are key to building consumer trust and upholding market integrity." Borrowers who had a loan with El Cheapo Cars which was varied between 2015 and 2021 may be eligible for compensation. The commission said it would contact affected people shortly. The commission began its investigation into El Cheapo in October 2021, after a complaint.
