ComCom to crack down on lending

Responsible lending is one key priority for the Commerce Commission for the upcoming year, according to a new report. Chairman Mark Berry said that while there were a number of areas the Commission would always regard as a priority, the organisation would also focus on several “priority focus areas” in 2017 and 2018, which have been published for the first time. “We will focus on responsible lending (including online lending) and credence claims,” Berry said. “Despite the number of investigations and cases we have taken, our intelligence suggests some lenders are still failing to comply with responsible lending principles.” The Commission’s announcement that it would take a hard line on responsible lending follows an update to the official Consumer Credit Fee Guidelines on June 30. Numerous finance companies have been charged by the Commerce Commission for failing to comply with the Credit Contracts and Consumer Finance Act (CCCFA) by enforcing unfair fees. Most recently, Acute Finance Limited was fined $22,000 by the Commerce Commission for unreasonable mandatory fees on their loans.   “By failing to comply, these lenders are not only breaching the law, they are potentially putting people at risk of hardship,” Berry said.