The Commerce Commission has released updated draft guidelines designed to assist lenders when setting credit fees.
The Commerce Commission has released updated draft guidelines designed to assist lenders when setting credit fees.
The Commission’s previous fees guidelines were published in 2010 and remained in draft pending the outcome of its long-running case against MTF and Sportzone. The Commission filed court proceedings in 2009 alleging both companies charged unreasonable establishment and other credit fees. After appeals to the Court of Appeal and Supreme Court which both found in favour of the Commission, and the introduction of amendments to the Credit Contracts and Consumer Finance Act 2003 (CCCF Act), the Commission is now able to provide updated guidance to lenders.
“Now the final judgment in the MTF/Sportzone case has been issued the Commission is able to consult with the credit community on fees guidelines. These guidelines aim to clarify how lenders should approach the task of setting credit fees. They also provide guidance on the limitations that apply to the fees lenders may charge. We recognise it has been some time since our 2010 draft guidelines and that lenders are keen to understand their obligations and our approach to enforcement, so we are pleased to be able to issue the draft guidelines for consultation today. We look forward to hearing feedback on the draft,” said Commissioner, Anna Rawlings.
The Commission invites submissions from interested parties. Submissions should be sent to creditfeesubmissions@comcom.govt.nz by 5pm on 25 October 2016*. They can also be posted to:
Credit fees submissions Commerce Commission PO Box 2351 Wellington 6012
