ComCom wants legal clarity

Since its incorporation in May 2014, Harmoney has charged borrowers a "platform fee" that is added to all loans funded through its platform. Before December 2015 Harmoney set the fee at a percentage of the amount borrowed.

The commission’s view is that the platform fee is a credit fee under the Act, and that Harmoney is a creditor.

Harmoney says it is not a creditor, and that the fee is the revenue it earns for running its loans marketplace.

If the court finds that the platform fee is a credit fee, the CCCFA requires the fee to be reasonable and only cover the lender’s transaction-specific costs.