Borrowers to get refunds after Harmoney and Commerce Commission strike deal
2 September 2021
Nearly 40,000 borrowers who used the Harmoney online lending platform over the past seven years are in for refunds.
The Commerce Commission and the company have struck a $7 million deal over unreasonable fees charged.
Harmoney started operating in 2014 and brought together willing lenders and borrowers online.
It charged an establishment fee which started as a percentage of the loan with a maximum of $1,500 and then was capped at a fixed rate of $500.
The Commission claimed the fee was covered by the Credit Contracts and Consumer Finance Act (CCCFA), and started legal action in 2016 to get a ruling on the issue.
Excerpt from RNZ
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