Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Bluestone mortgage customers to get $200,000 back

Bluestone mortgage customers to get $200,000 back

The Commerce Commission has reached an out of court settlement with three companies from the finance industry that will see $200,000 paid to 295 customers.

In March 2009, the Commission filed civil proceedings in the High Court against Bluestone Mortgages NZ Limited, Trustees Executors Limited and TEA Custodians (Bluestone) Limited (together Bluestone) in relation to alleged breaches of the Credit Contracts and Consumer Finance Act 2003 (CCCF Act).

The Commission was concerned that Bluestone charged some customers an unreasonable ‘deferred establishment fee’ when they repaid their loan within the first four years. The Commission was of the view that the deferred establishment fee charged by Bluestone was an unreasonable fee under the CCCFA.

The Commission has settled this case following a decision of the High Court in August 2012 where Bluestone successfully argued that the Commission was out of time to bring claims on behalf of a number of borrowers who had paid the deferred establishment fee. This reduced the number of borrowers covered by the Commission’s case.

Bluestone does not accept that it has breached the CCCFA and has made no admission of liability.

The Commission is in the process of finalising the method for calculating payments to eligible Bluestone borrowers and will contact them regarding the settlement in the New Year. Eligible borrowers are those who entered into a consumer credit contract with Bluestone between 27 March 2006 and 13 October 2006 and were charged a ‘deferred establishment fee’ when they repaid their loan within the first four years.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news