Draft credit fee guidelines released for consultation
The Commerce Commission has released updated draft guidelines designed to assist lenders when setting credit fees.
The Commission's previous fees guidelines were published in 2010 and remained in draft pending the outcome of its long-running case against MTF and Sportzone. The Commission filed court proceedings in 2009 alleging both companies charged unreasonable establishment and other credit fees.
After appeals to the Court of Appeal and Supreme Court which both found in favour of the Commission, and the introduction of amendments to the Credit Contracts and Consumer Finance Act 2003 (CCCF Act), the Commission says it is now able to provide updated guidance to lenders.
"Now the final judgment in the MTF/Sportzone case has been issued the Commission is able to consult with the credit community on fees guidelines," Commissioner Anna Rawlings says.
"These guidelines aim to clarify how lenders should approach the task of setting credit fees. They also provide guidance on the limitations that apply to the fees lenders may charge. We recognise it has been some time since our 2010 draft guidelines and that lenders are keen to understand their obligations and our approach to enforcement."
Submissions close at 5pm on 24 October 2016.
Last updated on the 16th September 2019