The Commerce Commission has filed criminal charges in the Auckland District Court against an unregistered and uncertified lender, Ilaisaane Malupo, trading as Nane Easy Loan Finance Services NZ (Nane Loans). The Commission alleges Ms Malupo provided personal loans illegally to members of the Tongan community in South Auckland from March 2024.

Associate Commissioner Joseph Liava'a says when lenders are identified operating outside of the law, the Commission will act swiftly to shutdown these operations to ensure that consumers are protected when borrowing money or buying goods on credit.

Under the Financial Service Providers (Registration and Dispute Resolution) Act and the Credit Contracts and Consumer Finance Act (CCCFA), all lenders must be registered and certified in order to provide consumer credit.

“Often these kinds of lenders are a last resort for people who are struggling to borrow from reputable lenders. Many people who borrowed from Ms Malupo were already under financial pressure and on low incomes, so irresponsible lending could have had a big impact on borrowers and their families,” Mr Liava’a says.

“Some of the borrowers indicated they needed to borrow money to buy food or pay off other loans,” Mr Liava’a says.

Alongside the lack of certification, the Commission alleges Ms Malupo’s terms included high interest rates of up to 15 per cent charged on a weekly basis, which would double if borrowers failed to repay the loans within 28 days; and late payment fees of up to $10 per day.

“In order to keep up with payments some borrowers resorted to selling their sentimental possessions or missing rent payments,” Mr Liava’a says.

Ms Malupo operated her business on social media and in some cases threatened that borrowers who failed to repay their debt would be ‘named and shamed’ on Facebook or other Tongan media sites until repayment was made.

“Public shaming is never ok and could put borrowers in a vulnerable position to avoid being called out for their friends and family to see,” Mr Liava’a says.

The Commission has prioritised enforcement action against lenders who have not met their obligations under the CCCFA. The Commission is particularly focussed on lenders who provide credit to vulnerable consumers in New Zealand.

Background
The Commission launched an investigation into Ilaisaane Malupo after receiving enquiries, including from a financial mentor about Ms Malupo’s lending practices which were causing harm to borrowers.

Whilst the Commission is continuing its investigation into further breaches of the CCCFA which are likely to have occurred, the Commission’s immediate priority was to stop Ms Malupo from entering new loans or enforcing any existing loans. Ms Malupo has been charged (4 June 2025) with:

• Criminal charges under section 11 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 for providing a financial service without being registered, the penalty of which is 12 months’ imprisonment or a fine not exceeding $100,000; and
• Criminal charges under section 103(2) of the Commerce Act 1986 for attempting to deceive or knowingly mislead the Commission on any matter before it, the penalty of which is a fine not exceeding $100,000.

All lenders must be certified under Part 5A of the Credit Contracts and Consumer Finance Act 2003 by the Commerce Commission. To gain certification, lenders must satisfy the Commission that those operating the business are financially sound, honest, reputable, reliable and competent to do the job.

An up-to-date database of certified lenders can be found here: https://fsp-register.companiesoffice.govt.nz/help-centre/getting-started-on-the-register/searching/

The Commission has released a ‘quick guide to borrowing money’ to assist borrowers on what to expect from a lender here: https://comcom.govt.nz/consumers/dealing-with-typical-situations/borrowing-money-and-buying-on-credit/a-guide-to-borrowing-money

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