The Commerce Commission is taking short-term lender Moola, operated by NZ Fintech Limited, to the high court.
The Commission alleges that Moola failed to exercise the care, diligence and skill of a responsible lender between June 2015 and November 2017.
During that period Moola offered short term loans with interest rates of between 182.5% and 547.5% per annum depending on the term of the loan.
The Commision alleges Moola failed to make inquiries so as to be satisfied of the borrowers’ requirements and objectives; failed to make inquiries so as to be satisfied of the borrowers’ ability to repay without substantial hardship; failed to exercise care, diligence and skill in text and email advertising; failed to treat borrowers reasonably and ethically when breaches of loan agreements occurred; failed to ensure loan agreements were not oppressive, including interest rates; failed to ensure it did not induce borrowers to enter into agreements by oppressive means.
The Commission’s investigation was initiated following a referral from a Christchurch budget advisory service.
As the matter is now before the Court the Commission will make no further comment at this time.