Customers share Bluestone fee payout

Last updated 10:29 24/12/2012

Relevant offers

National business

EQC engineer Graeme Robinson wins appeal Retirement villages are booming, but school up before making the move David Ross of Ross Asset Management declared bankrupt Te Aroha pig farmer gets $65,000 fine for illegally dumping effluent Marlborough dairy farmers guilty of breaching milking order More interest rates cuts to come after "relentless" dairy price drops Dairy futures down to US$1500 a tonne range China's stock slump hits world markets Gender and race discrimination hurting New Zealand financially: Lawyer Mai Chen Missed contract pushes companies from West Coast

Commerce Commission action alleging mortgage lender Bluestone charged excessive fees has led to a payout for customers.

Under a settlement agreement, 295 customers will share a $200,000 payout from Bluestone Mortgages NZ, Trustees Executors and TEA Custodians (Bluestone).

The commission took court action in March 2009 over concerns Bluestone was charging unreasonable "deferred establishment fees" to customers who repaid their loans within four years.

The fees were in breach of the Credit Contracts & Consumer Finance Act 2003, said the commission.

Despite the payout, Bluestone has said it does not accept it broke the law and does not admit liability.

The commission said it is working out how much each customer is due and will contact them regarding the settlement in the New Year.

Eligible borrowers are those who entered into a consumer credit contract with Bluestone between March 27 and October 13, 2006, and were charged a 'deferred establishment fee' when they repaid their loan within the first four years.

Ad Feedback


Special offers

Featured Promotions

Sponsored Content