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NZ must be nimble on p2p: Seymour

Act leader David Seymour is calling on the Minister of Commerce to allow peer-to-peer platforms flexibility in their charges.

Tuesday, October 11th 2016, 9:59PM

The Commerce Commission is going to court to ask for clarity on how it applies the Credit Contract and Consumer Finance Act on loans issued through peer-to-peer lender Harmoney.

Harmoney’s fees were questioned because they were originally set as a percentage of the amount borrowed. The CCCFA requires that fees are proportionate to the cost to the lender of administering the loan.

“A country of our size and location must be a more nimble regulator than other countries, especially in a time of rapid technological change. It was disappointing to see the Minister of Commerce, under questioning in the House, had no answers other than that he’s ‘considering the options’, especially considering the sector brought this to his attention four months ago,” Seymour said.

“Badly-drafted red tape and an overzealous regulator is threatening the growth of peer-to-peer lending. MBIE is advising the Minister to apply fee restrictions to these companies as if they are traditional lenders, despite the fact that they are not actually lenders, but intermediaries connecting personal lenders with borrowers. This stands in stark contrast with the UK, US, and Australia, where peer-to-peer lenders are using models that the Commerce Commission objects to, where platforms can charge fees to borrowers as well as lenders.”

He said it would be foolish of the Government to scare off peer-to-peer platforms when the international industry was growing quickly.

“The Commerce Commission has spent millions trying to interpret the CCCFA, while peer-to-peer platforms tear their hair out dealing with the uncertainty and (in the case of Harmoney) court costs. Rather than waiting for a costly and elongated test case, the Minister should amend the law and bring us in line with overseas jurisdictions.”

Tags: Harmoney Peer to Peer Lending

« Harmoney launches automated serviceGovernment 'suffocating' peer-to-peer »

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Lender Flt 1yr 2yr 3yr
ANZ 5.69 4.35 4.35 4.55
ANZ Special - 3.85 3.85 4.05
ASB Bank 5.70 4.29 4.35 4.55
ASB Bank Special - 3.89 3.85 4.05
BNZ - Classic - 3.85 3.85 4.05
BNZ - Mortgage One 6.40 - - -
BNZ - Rapid Repay 5.85 - - -
BNZ - Std, FlyBuys 5.80 4.69 4.59 4.79
BNZ - TotalMoney 5.80 - - -
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.60 4.75 -
Housing NZ Corp 5.80 4.69 4.49 4.45
HSBC Premier 5.89 3.79 3.79 3.89
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.60 ▼4.60 ▼4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.65 - - -
Kiwibank Special - 3.85 ▼3.85 ▼3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 4.89 4.99 -
Resimac 5.30 4.86 4.14 4.19
RESIMAC Special - - - -
SBS Bank 5.79 4.85 5.05 5.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 3.85 3.85 3.99
Sovereign 5.80 4.29 4.35 4.55
Sovereign Special - 3.89 3.85 4.05
The Co-operative Bank - Owner Occ 5.65 3.89 ▼3.89 4.05
The Co-operative Bank - Standard 5.65 4.39 ▼4.39 4.55
TSB Bank 5.69 4.45 4.35 4.55
TSB Special - 3.95 3.85 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.79 4.69 4.79 5.19
Westpac - Offset 5.79 - - -
Westpac Special - 3.85 3.85 4.05
Median 5.80 4.35 4.35 4.19

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