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

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news