We were pleased to see the result of the Commerce Commission case against MTF/Sportzone in the Supreme Court. This landmark decision confirmed the practice that we have always adopted at South Pacific Loans – ensuring all our clients get a fair deal.
The five Supreme Court Justices were unanimously of the view that the CCCFA: “indicates a transaction-specific approach to the setting of fees. It is not permissible to take all operating costs (or virtually all) and allocate them to one fee or the other. The consequence of this is that any costs incurred by a credit provider will not be referable to particular credit transactions and will therefore have to be recovered in the interest rate”.
We already take the approach that the Supreme Court outlines in its judgement – so any fees that we charge relate directly to the costs for that loan.