BNZ has announced that it is refunding $3.8 million in interest and fees charged to customers after it failed to properly implement new lending requirements.
BNZ confirmed that errors were made with documentation following changes to the Credit Contracts and Consumer Finance Act (CCCFA). Errors BNZ committed in 2015 were either that it did not send out documentation to mortgage customers quickly enough, or there was missing or incorrect information.
“No customers were overcharged, but we didn’t get it 100% right,” BNZ CEO Angie Mentis said. “While mistakes do happen from time-to-time, finding those mistakes and fixing them is simply the right thing to do for our customers.”
BNZ will pay more than 10,000 customers, who paid interest and fees during the time they didn’t have the documentation. The amount customers will get varies – the average refund is around $375 with any refund of $4.99 or lower to be rounded up to $5. Affected customers will have their refund automatically deposited into their account or have a check posted to them.
The lender noted all customers now have the documentation they need and that it will send out letters confirming refund this week.