Three mobile truck traders have pleaded guilty to charges relating to their lending practices.
Goodring Company Limited (Goodring), Betterlife Corporation Limited (Betterlife), and Ace Marketing Limited (Ace Marketing) will be sentenced in the next few months.
The charges were brought by the Commerce Commission and come after a year-long mobile trader project, which revealed widespread non-compliance issues in the industry.
The three companies sell consumer goods from trucks or through door-to-door sales reps. Prices charged are significantly higher than in retail stores. The commission said a Betterlife customer was charged $2401 for an iPhone 5C when the product retailed for about $600. It also found Goodring routinely sold branded hoodies well in excess of in-store prices.
Goodring will be sentenced on 30 charges relating to the Credit Contracts and Consumer Finance Act, while Betterlife and Ace Marketing face six and nine charges respectively. All three traders failed to provide their customers with the legally required credit contract information in a clear and concise way.
Goodring faces two other charges under the Financial Service Providers (Registration and Dispute Resolution) Act. Ace Marketing also faces 19 charges under the Fair Trading Act for misleading borrowers about their rights.