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: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news