30 May 2009

No further appeal in test case of early loan repayments

7:39 am on 30 May 2009

The Commerce Commission says it will not make any further appeal in a test case relating to penalty fees that finance companies charge borrowers who repay their loans early.

The commission had appealed against a decision by the Auckland District Court last year to clear Avanti Finance of 50 charges relating to the calculation of break fees.

The High Court this year upheld the ruling.

The case was brought under the Credit Contracts & Consumer Act.

The commission says the issues raised in the case were important in determining the approach a creditor should take when calculating a break on early repayment of a loan.