Commission files charges against Auckland mobile trader

Commission files charges against Auckland mobile trader, Zee Shop

Mobile trader Zee Shop Limited (Zee Shop) appeared in the Auckland District Court today in relation to 15 charges brought by the Commerce Commission relating to its lending practices.

The charges against the Auckland-based truck shop are brought under the Credit Contracts and Consumer Finance Act 2003 (CCCFA) and relate to contracts entered into between 6 June 2015 and 31 December 2015.

The Commission alleges that Zee Shop failed to provide its customers with the legally required key information relating to their loans. This included failing to state: the amount of each payment, when the first payment under the contract was due, and the frequency with which debtors would be required to make payments.

The Commission also alleges that information contained in Zee Shop’s contract document was difficult to read and understand, and key information was obscured. The terms and conditions were in two condensed columns with no headings, in a poor layout and format and with grammar that made some of the clauses incomprehensible.

As this matter is now before the Court, the Commission is unable to comment further at this time.

Background

In August 2015, the Commission published its mobile trader report after a year-long investigation into the industry. It found that 31 of the 32 mobile traders identified did not comply with all of their obligations under the Fair Trading Act and CCCFA. You can see the full Mobile Trader 2014/15 Report and our press releasehighlighting the report.

Zee Shop did not form part of the Commission’s mobile trader investigation – its conduct came to the Commission’s attention after meeting with the company in November 2015, after the report had been published.

In addition to Zee Shop, the Commission has prosecuted seven other mobile traders this year. Goodring Company Limited and Betterlife Corporation Limited were fined $98,000 and $73,500 respectively in June. You can read more in the media release. Flexi Buy Limited was fined $50,000 in the Auckland District Court and $3,480 was awarded in damages to affected customers. Ace Marketing Limited pleaded guilty to CCCFA charges for failing to provide its customers with the legally required loan information in a clear and concise way, and is awaiting sentencing. SmartStore pleaded guilty to 11 charges for its loan contracts and extended warranty agreements and Macful International Limited faces 21 charges under the CCCF Act and the Finance Service Providers (Registration and Dispute Resolution) Act 2008. The seventh mobile trader has not yet appeared in Court so cannot be named.

© Scoop Media