The Commerce Commission says Adelphi Finance Ltd and Shaw Personal Finance Ltd have refunded customers or reduced customer account balances by over $1.4 million and $100,000 respectively after a Commission warning that they were likely to have breached consumer credit laws.

It says changes to the Credit Contracts and Consumer Finance Act 2003 (CCCFA) last year included an expansion of the key information that lenders must disclose before a loan is entered into. 

Failure to disclose the key information to borrowers means the lender must refund any interest or credit fees they charge during the period of non-compliance.

The Commission says the consumer credit contracts of Adelphi Finance and Shaw Personal Finance were unlikely to comply with the CCCFA because they did not include all of the required key information. 

"This included not providing borrowers with: the lender's registration number as a financial service provider, a full description and explanation of the security interests taken (if any), and details about the timing of the borrower's right to cancel and the borrower's right to apply for relief on grounds of unforeseen hardship."

The Commission says both Adelphi Finance and Shaw Personal Finance promptly and voluntarily refunded the relevant interest and credit fees to customers.

"They also withdrew from pursuing all interest and credit fees not yet paid to them during the period of non-compliance, and corrected their disclosure." 

The Commission has warned Adelphi Finance and Shaw Personal Finance about their conduct.