Superloans firms ‘likely to have breached’ Act, Commerce Commission finds

Spread the love

Two companies within the Superloans group have been warned by the Commerce Commission after an investigation following a number of complaints from consumers and budget advisors.

No caption

Photo: RNZ/123RF

The Commission found Superloans Napier and Superloans Porirua provided consumers with high-cost loans on an ongoing basis.

Commission chair Anna Rawlings said in one case a borrower had 19 loans within a year.

“Our investigation found Superloans promoted and allowed its loans to be used on a regular and long-term basis and encouraged longer term and regular borrowing through the use of text and email messaging to borrowers.

“These text messages did not contain a risk warning.”

The Credit Contracts and Consumer Finance Act (CCCFA) requires lenders, before entering into an agreement, to make reasonable inquiries with a borrower so as to be satisfied that the agreement meets the borrower’s requirements and objectives, and to exercise the care, diligence and skill of a responsible lender.

READ ALSO:  Six men arrested and charged in relation to historical offences

Rawlings said the two companies were likely to have breached the CCCFA.

“There was also limited evidence to indicate a borrowers’ previous borrowing or stated purpose for the loan was discussed or taken into account when assessing the suitability of the loan, and Superloans Groups’ guidelines did not contain any guidance on how staff should comply with their responsibilities in this area.”

Join Geezgo for free. Use Geezgo\’s end-to-end encrypted Chat with your Closenets (friends, relatives, colleague etc) in personalized ways.>>

 132 

RECOMMENDED READ:
Swarm of quakes in quick succession hit Rotorua

The Bay of Plenty has been rocked by eleven earthquakes today. Photo: Supplied / Geonet The largest was a magnitude Read more

Revealed: The companies dumping contaminants down the drain

Talleys, Ernest Adams and Yoplait are among hundreds of manufacturers and brands dumping contaminants into New Zealand's drains and getting Read more

Covid community case: Infection at MIQ facility ‘most likely scenario’

Infectious disease expert Michael Baker says it is unlikely the woman at the centre of a Covid community case scare Read more

Leave a Reply