Borrowers to get refunds after Harmoney and Commerce Commission strike deal
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 RNZRead full article