The Commerce Commission says it has commenced High Court proceedings against payday lender Ferratum New Zealand Ltd under the Credit Contracts and Consumer Finance Act 2003 over alleged breaches of the lender responsibility principle.
It says it also seeks to reopen some of Ferratum’s loans on the grounds that they were induced by oppressive means and contained oppressive terms.
The Commission alleges that between mid-2015 and the present, Ferratum:
- failed to make reasonable enquiries as to the borrower’s requirements and objectives
- failed to exercise reasonable care in advertising loans
- failed to assist borrowers to reach informed decisions as to whether or not to enter into loans.
The Commission also alleges that this conduct, together with interest rates in excess of 183%, were oppressive.