News
31 August 2021

Harmoney repays $7m in unreasonable fees

37,000 customers overcharged on loans.

Money lender Harmoney is repaying $7m to customers after admitting its loan establishment fee was unreasonable.

About 37,000 customers will be compensated.

The loan establishment fee – called a platform fee – has changed several times since Harmoney began trading. It was initially a percentage fee of up to $1500, and later changed to a fixed fee of up to $500.

Fees were overcharged on loans entered into between 26 August 2014 and 25 August 2021.

Under consumer credit law, any fees charged by lenders must be reasonable.

In a settlement with the Commerce Commission, Harmoney agreed its platform fee was unreasonable and that it would compensate borrowers.

The company has dropped the fee to no more than $165 for new customer loans for the next five years.

The commission is seeking a High Court declaration that Harmoney breached the law by charging unreasonable fees. This case dates back to 2016 when the commission went to the High Court to confirm that Harmoney was subject to the Credit Contracts and Consumer Finance Act.

Member comments

Get access to comment

toni m.
10 Sep 2021
Add interest to the amounts owed to lenders

I feel it is reasonable Harmoney should now have to add interest onto the refunds owed to lenders because of these unreasonable establishment fees.

Jacqui B.
04 Sep 2021
shocked at how many Harmoney lenders

I was not just shocked at Harmoney's unscrupulous tactics , but at how many people were using their "Services".
37,000 is the size of a whole town and they were due to be repaid $7 million . Just doing the maths .... each lender gets $190 .... I am not sure that this is enough for justice to be done to these people. I agree with Kevin H they were kicking people when they are down and their interest rate and "Loan Fee the reason we have breakfast in schools programmes . Anybody else see that connection?

Kevin H.
31 Aug 2021
Harmoney and other high interest loan companies

It is rather sad that some of hese loan companies for the desperate, punish the lenders with higher than normal interest rates as well as other 'charges'.
I appreciate these borrowers are higher risk, but to me, it seems like kicking a person when they are down.
In my opinion, it should be compulsory these lenders ensure the borrower has sought independent financial advice before approving loans.