Dealer Finance Limited overcharged interest to some borrowers on their consumer credit contracts since 2005 because it did not credit lump sum or accelerated payments made by borrowers to the unpaid balance of their loans as soon as practicable. The Commissions view was that in doing so Dealer Finance had breached s46 and 39 of the CCCFA. Dealer Finance entered into a settlement agreement with the Commission and has agreed to refund overcharged interest of $440,000 (and additional compensation for some customers) to approximately 5,800 affected customers.
PartiesDealer Finance Limited
Category
Consumer credit
Sub-category
Act/Section
Credit Contracts and Consumer Finance Act ss 39, 46
