Financier refunds $49,000 following breach of CCCFA

A financier has refunded $49,000 to consumers following receipt of a warning from the Commerce Commission for breaching the Credit Contracts and Consumer Finance Act 2003 (CCCFA).

Section 51 of the CCCFA provides that creditors may only charge interest and other fees that have accrued, or would ordinarily be payable, up to the time of full repayment.

In this case, the financier was charging consumers interest for the whole month in which early repayment was made, instead of just up until the date of repayment.

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