Debt collection company Baycorp says it welcomes a decision clarifying the rules on fees when people have property repossessed.
The Commerce Commission has warned debt collectors not to overcharge fees they impose when they repossess property.
It has pointed out fees can only be claimed up to the point where the goods are repossessed and sold.
Baycorp agreed to refund 2370 debtors or reduce their balances, totalling $3,457,634 in a settlement with the commission. The commission also told Baycorp to pay back $46,000 it should not have collected.
Chief executive Grant Jorey says he accepts the commission's ruling and the company will ensure it does not make this mistake again.
"We've made changes to our system so that it now requires creditors to identify the balance before and after repossession, the date of repossession and the cost of repossession activity."
Mr Jorey says Baycorp has introduced a manual review of all new accounts.