MTF case to go to top

The supreme court has granted Motor Trade Finances (MTF) and Sportzone Motorcycles leave to appeal the court of appeal judgement in the Sportzone case. The court’s decision allows a continuation of the key arguments regarding the costs a lender can reasonably recover, through a fee charged to a borrower, under the “unreasonable fee” provisions of the Credit Contracts and Consumer Finance Act. ALSO ON AUTOFILE: NZ dollar reaches new low - concerns about economy These provisions apply to all businesses that provide credit to consumers, including banks, finance companies and retailers. “The court has declined to hear one point that it says is specific to MTF and its commercial relationship with its shareholder originators,” says Glen Todd, chief executive officer. “Consequently, the supreme court decided this argument is not of general or public importance or a matter of general commercial significance.” The total amount by which the fees charged by MTF that have been held to be unreasonable, and would be repaid to 39 Sportzone borrowers if the decision is upheld, is less than $10,000. The date for a hearing is likely to be held in late 2015 or early 2016.