24 Dec 2012

Settlement reached over excessive fee charges

12:13 pm on 24 December 2012

The Commerce Commission has reached an out of court settlement worth $200,000 with three finance companies which will be paid to almost 300 people for excessive fee charges.

The Commission filed civil proceedings against three Bluestone units in 2009, claiming they charged unreasonable fees to some customers when they repaid loans within the first four years.

The case was settled following a High Court decision earlier this year, when Bluestone successfully argued the commission was out of time to bring claims on behalf of a number of borrowers who had paid the fee.

This reduced the number involved to 295.

Bluestone does not accept it breached the Credit Contracts and Consumer Finance Act and has made no admission of liability.

The commission has not yet finished calculating how much each affected customer will receive.