Banned after illegal lending
Ilaisaane Malupo, trading as Nane Easy Loan Finance Services NZ, has been banned from participating in the financial-service industry for 24 months after providing personal loans to south Aucklanders illegally.
During sentencing at Auckland District Court, Malupo was ordered to pay $15,000 in reparations to seven borrowers and to complete 150 hours of community service.
This was a reduction from a starting point of about $50,000 in combined reparations and fines alongside the two-year banning order. The judge noted the reduction recognised the court’s requirement to balance the need for a penalty against Malupo’s lack of means to pay.
Under the Financial Service Providers (Registration and Dispute Resolution) Act (FSPA) and Credit Contracts and Consumer Finance Act (CCCFA), all lenders must be registered and certified to provide consumer credit.
Malupo did not obtain registration despite repeated prompts and guidance from the commission and continued to lend, knowingly in breach of the FSPA.
Simon Anderson, head of credit investigations and compliance, says the regulator will hold unregistered lenders to account and ensure they operate within the law.
“Those who don’t can expect to be on the receiving end of enforcement action,” he adds. “On several occasions, we advised Malupo of the legal requirement to become registered. Not only did she ignore this, she targeted people who could least afford the loans she was offering.”
As well as being an unregistered lender, Malupo’s terms included interest rates of up to 15 per cent per week. The amount would double if borrowers failed to repay loans within 28 days with late fees of up to $10 per day also charged.
“The distressing element of this case was many of Malupo’s customers were already struggling financially when they came into contact with her,” says Anderson says. “After taking out a loan, some would sell meaningful personal items or miss other essential payments, such as rent, to keep up with repayments.”
In some cases, she threatened borrowers who fell behind on repayments would be publicly exposed on Facebook or Tongan media sites.
In sentencing Malupo, Judge Sharp acknowledged the victim-impact statements provided by affected borrowers, and said they illustrated the emotional and financial impacts borrowers had faced.
He adds: “There are persons who have suffered as a consequence of paying fees and interest they shouldn’t have had to pay.”
The commission first launched an investigation into Malupo after receiving complaints, including from a financial mentor, about her lending practices. In June 2025, she was charged with:
• Criminal charges under section 11 of the FSPA for providing a financial service without being registered, the penalty of which is 12 months’ imprisonment or a fine not exceeding $100,000.
• Charges under section 103(2) of the Commerce Act for attempting to deceive or knowingly mislead the commission on any matter before it, the penalty of which is a fine not exceeding $100,000.
All lenders must be certified under part 5a of the CCCFA. To gain certification, lenders must satisfy the regulator that those operating the business are financially sound, honest, reputable, reliable and competent to do the job.
