More than 300 borrowers will be getting refunds after the Commerce Commission warned a second-hard car financier not to charge interest and fees on loans after it repossessed defaulting borrowers’ cars. Finance company Financial Holdings Limited (FHL) was warned by the Commerce Commission that its repossession documentation and post-repossession charges likely breached both the Fair Trading Act and the Credit Contracts and Consumer Finance Act. The company provided personal and commercial finance, focusing on personal loans for the purchase of second-hand motor vehicles, the commission said. The company had continued charging interest and fees from time to time on two borrowers’ files for 18 years after the repossession and sale of secured property, the commission said. SUPPLIED Commerce Commission commissioner Anna Rawlings said lenders could not charge fees and interest to loan after secured property had been repossessed and sold.

Source: Stuff July 28, 2020 01:18 UTC