About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, November 15th, 6:56PM
Mortgage Rates Daily Commentary
Friday 15 November 2019  Add your comment
Groups weigh up membership costs

At the TMM Better Business Conference this week, adviser groups debated rising membership costs under the new regulatory regime. Some believe membership costs could rise by thousands of dollars, and others said they expect no major changes: [READ ON]

rss
Latest Headlines

MTF case reaches Supreme Court

A long-running battle over what exactly lender credit fees should cover has hit the Supreme Court this week.

Thursday, November 12th 2015, 9:50AM

by Miriam Bell

NZXZ-listed Motor Trade Finance (MTF) and the Commerce Commission are seeking a final verdict on what can be charged for various fees under the Credit Contracts and Consumer Finance Act 2003.

The case is important as it will set a precedent and lay down the rules on lender credit fees.

MTF is appealing a Court of Appeal decision earlier this year that the fees charged by MTF were unreasonable under section 41 of the CCCFA.

The Court of Appeal upheld the findings of lower courts in its decision and found that lender credit fees should only cover costs closely related to the particular loan transaction.

MTF’s day in the Supreme Court has been a long time coming.

Its origins date back to a complaint about MTF and one of its shareholders, Sportzone Motorcycles, which was laid with the Commerce Commission back in 2006.

The complaint led to a Commerce Commission investigation into the lending practices of MTF and Sportzone.

Both companies were charged with charging unreasonable establishment fees, account maintenance fees, and arrears fees on 39 finance contracts, in breach of the CCCFA.

In 2013, a High Court ruling found the fees charged were unreasonable and in breach of the CCCFA.

Then, in 2014, the High Court released a further judgement clarifying the practices lenders should adopt when charging fees.

MTF and Sportzone appealed both decisions to the Court of Appeal which also found in favour of the Commerce Commission.

This week’s Supreme Court hearing is MTF’s last attempt at gaining a ruling in its favour.

However, Sanderson Weir director Jonathan Flaws said the Supreme Court won’t be able to do much more than tinker around the edges of the existing MTF judgements.

In his view, this will achieve nothing. 

Flaws said the High Court decision, which was upheld by the Court of Appeal, defined what is unreasonable when it comes to establishment fees and prepayment fees.

It also laid out a close and relevant test for establishment fees and set a general standard for “other fees”.

“Having the certainty of applying the methodology outlined by Justice Toogood is more constructive than trying to tweak the methodology to get an arguably better result for lenders in some areas only to find a worse result in others.”

A Commerce Commission spokesperson said they are not able to comment on the case while it is before the courts.

The Supreme Court’s hearing into the MTF case finishes today, but a decision in not expected for some time.

Tags: CFA Commission disputes fees finance companies financial advisers Responsible lending

« Housing market still a risk - RBNZMore OCR cuts to come »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 4.05 3.95 4.39
ASB Bank Special - 3.55 3.45 3.89
BNZ - Classic - 3.55 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.35 3.35 3.35
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 ▼4.14 ▲4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▼3.39 ▲3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - ▼3.55 3.39 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.55 3.45 3.99
Median 5.34 4.04 4.09 4.39

Last updated: 15 November 2019 4:16pm

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com