Regulatory agency files High Court proceedings against P2P lender

The Commerce Commission has filed proceedings against Harmoney over its platform fee

Regulatory agency files High Court proceedings against P2P lender
The Commerce Commission has filed civil proceedings against peer-to-peer lender Harmoney over allegedly unreasonable platform fee.

The regulatory agency claims that Harmoney have breached the Credit and Contracts and Consumer Finance Act, which prohibits lenders from charging unreasonable credit fees.

Harmoney, since its incorporation in 2014, has charged borrowers a platform fee, which is added to all loans funded through its platform. ComCom alleges that the platform fee is a credit fee under the CCCFA and is unreasonable.

ComCom filed the proceedings in the High Court at Auckland, seeking a declaration that the Harmoney companies have breached the act, as well as compensation for all affected borrowers.

According to ComCom, it submitted a number of legal questions in the High Court last year to clarify how the CCCFA applies to the platform fee and to consumer loans entered into on Harmoney’s platform.

In May, the High Court struck out two of the questions. The High Court is due to consider arguments about the remaining three questions in October.


Related stories:
Mortgage lender approved for P2P lending