The Commission brought High Court proceedings against Moola.co.nz Limited (previously named NZ Fintech Limited) (trading as Moola) alleging it breached the lender responsibility principles contained in the Credit Contracts and Consumer Finance Act 2003 (CCCFA). Moola subsequently agreed a settlement with the Commission. The settlement relates to loans that Moola provided to 50 borrowers between 6 June 2015 and 30 November 2017. Moola also agreed to enforceable undertakings to implement systems, processes, policies and training that ensure responsible lending compliance before entering into future high-cost short term loans. As part of the settlement, the Commission sought, and Moola did not oppose, High Court declarations that it had contravened section 9C(1) of the CCCFA due to its breaches of other sections of the responsible lending principles. The High Court granted those declarations on 19 November 2021.
Credit Contracts and Consumer Finance Act s 9C(1)