Lending rules 'clarified'

The high court has released a judgement that further clarifies the rules lenders must comply with when charging credit fees to borrowers. The decision is the second issued in ongoing proceedings taken by the Commerce Commission against Sportzone Motorcycles, which is in liquidation, and Motor Trade Finances Ltd (MTF). READ: MTF's views on judgement The commission has alleged they charged unreasonable establishment and account maintenance fees – and arrears fees to borrowers of motor vehicle finance – in breach of section 41 of the Credit Contracts and Consumer Finance Act (CCCFA). Chairman Dr Mark Berry says this case is the latest word on how credit fees may be calculated and the facts provide good case studies for lenders to consider. MTF and Sportzone have appealed both judgements, which will be heard from November 19-20. To read the high court judgement, click here.