The Commerce Commission said yesterday it had filed High Court proceedings against Tauranga company Linsa Finance Ltd, seeking orders that it return costs of borrowing totalling about $680,000 for over 1700 loan contracts.
Alternatively, the commission wants Linsa Finance to pay statutory damages to affected borrowers.
Linsa’s directors are Jim & Kaaren Smylie, of Tauranga. One of Mr Smylie’s previous businesses, Western Bay Finance Ltd, went into receivership in 2006, sold its remaining loan receivables to 2 of former Equiticorp boss Allan Hawkins’ companies in 2008, and has since been wound up. Preferential creditors received a payout of 82c in the dollar.
Linsa Finance has offices in Manurewa & Tauranga, offering secured & unsecured personal loans of up to about $4000.
The commission alleges that between 6 June 2015 & 29 March 2016 Linsa Finance’s loan contracts failed to include some of the key disclosure information required under the Credit Contracts & Consumer Finance Act. The alleged deficiencies affected 1721 loan contracts.
The commission said failure to disclose the key information meant borrowers weren’t liable to pay interest or credit fees Linsa charged during the period of non-compliance.
Attribution: Commission release, Companies Register.