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

 


Finance company fined for its part in toxic water claims

Finance company fined for its part in toxic water claims investigation

Auckland based finance company Tiny Terms Limited has been fined $77,200 in the Auckland District Court today for its part in the door to door sale of water filters by Love Springs Limited.

Tiny Terms provided finance for the purchase of Love Springs’ water filters. Consumers who agreed to purchase water filters were signed up to 2 year rent-to-own agreements.

As a creditor Tiny Terms was required to disclose information about the terms of the contract to debtors and to do so in a manner that could be clearly and easily understood. Tiny Terms failed to do this and as a result breached sections 17 and 32 of the Credit Contracts and Consumer Finance Act 2003. Tiny Terms also breached the Fair Trading Act by trying to enforce these contracts where it had no right to do so because of its inadequate disclosure.

Between July 2009 and December 2010, Tiny Terms entered into a total of 21,523 credit contracts and each of those credit contracts was for $1,595.

Commerce Commission Head of Investigations Ritchie Hutton said today’s sentencing sends out a strong message to both consumers and creditors.

“It is important that consumers understand the cost of buying goods on credit. Creditors must provide information to consumers about their credit contracts to help them do this and this information must be set out clearly. Where creditors, such as Tiny Terms do not do this they can expect to face significant penalties.”

“This brings to a close a very successful investigation involving Tiny Terms, Love Springs and Phillip Smart,” said Mr Hutton.

In December 2013, Love Springs and its director Phillip Smart were fined a total of $555,000 after Love Springs sales staff were trained to sell water filters using deliberate marketing tactics that took advantage of people’s fears about their health. As a result sales staff told consumers that local drinking water could cause cancer, birth defects and miscarriages and was dangerous to people’s health.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news