Peer-to-peer lending: Harmoney Limited

The Commission has filed civil proceedings in the Auckland High Court seeking the Court’s opinion on how the Credit Contract and Consumer Finance Act 2003 (CCCFA) applies to consumer loans entered into with peer-to-peer lender Harmoney Limited.

Since its incorporation in May 2014, Harmoney has charged borrowers a ‘platform fee’ that is added to all loans funded through its platform. The Commission’s view is that the platform fee is a credit fee under the Act, and that Harmoney is a creditor. Harmoney says it is not a creditor, and that the fee is the revenue it earns for running its loans marketplace.

The Commission has filed an application under section 100A of the Commerce Act asking the Court a number of legal questions and it expects that the answers will provide more clarity about how consumer credit laws apply to loans offered by Harmoney and other peer-to-peer lenders. More detail on the civil proceedings is available in the documents published below.

Read more in our media release.