New Zealand Law Society - High Court proceedings commenced against Pretty Penny

High Court proceedings commenced against Pretty Penny

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The Commerce Commission says it has commenced High Court proceedings against Quadsaa Pty Ltd (trading as Pretty Penny and PPL).

The Commission says the proceedings allege that Pretty Penny has breached the lender responsibility principles contained in the Credit Contracts and Consumer Finance Act 2003.

it says the proceedings relate to Pretty Penny’s conduct between September 2016 and June 2017. It says it has has received 76 complaints or enquiries about Pretty Penny since March 2017

"In that period Pretty Penny offered loans of between $50 and $550 for terms of between 1 and 92 days with an annual interest rate of 365%, or 1% per day with interest compounding daily," the Commission says.

The Commission alleges that Pretty Penny failed to exercise the care, diligence and skill of a responsible lender, as required by the lender responsibility principles.

It is seeking declarations that Pretty Penny’s conduct breached the Act, injunctions preventing Pretty Penny from lending without taking specified steps to ensure it meets its legal obligations, and compensation for affected borrowers