Real Finance to repay $1.36m to customers
515 borrowers charged unreasonable fees.
Money lender Real Finance is repaying $1.36m to borrowers after admitting it charged unreasonable fees to 515 borrowers for about 4000 loans.
Customers were charged establishment, administration and default fees on individual loan contracts between April 2013 and March 2020. These fees exceeded reasonable costs incurred by the company to administer the loans.
Under consumer credit law, any fees charged by lenders must be reasonable.
Commerce Commission chair Anna Rawlings said fees charged “are not intended to be used to cover general business expenses or to make a profit”.
In a settlement with the commission, Real Finance agreed its fees were unreasonable and has agreed to pay back customers who were overcharged.
Real Finance will be contacting affected customers and will set up a page on its website with information on how they can get a refund.