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

 


Antitrust regulator cuts deal with Bluestone over fees

Antitrust regulator cuts deal with Bluestone over early repayment fees

By Paul McBeth

Dec. 24 (BusinessDesk) - The Commerce Commission has cut a deal with Australian lender Bluestone Mortgages NZ over the fees charged on early repayments after a High Court ruling this year narrowed the regulator's scope to pursue a claim.

The regulator settled with Bluestone, Trustees Executors and TEA Custodians (Bluestone) over deferred establishment fees, which were charged when a client repaid a loan within the first four years, it said in a statement. The deal will see Bluestone refund $200,000 to 295 customers. The commission believed the fee breached the Credit Contracts and Consumer Finance Act, though the settlement means Bluestone doesn’t admit any liability.

"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," the regulator said.

In August, Judge Patricia Courtney turned down the competition regulator's application to extend the timeframe of its claim in the High Court on Auckland earlier this month, saying she had to strike a balance between the rights of borrowers and lenders.

The antitrust regulator was attempting to extend the timeframe of its initial claim between April 2005 and October 2006 by a further five years.

In 2010, Bluestone lost a bid to throw the regulator's case, with Justice John Priestley reluctant to strike out what would essentially be a test case of a certain part of the legislation.

The commission is finalising the method for calculating payments, and will contact borrowers next year. Borrowers who may be in line for a refund are those people who entered into a consumer credit contract with Bluestone between March 27, 2006 and Oct. 13, 2006, and were charged a fee after repaying their loan within the first four years.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news