BUSINESSDESK: The Commerce Commission has lost a bid to widen its claim against Australian lender Bluestone Mortgages NZ over fees charged on early repayments.
Judge Patricia Courtney turned down the competition regulator's application to extend the timeframe of its claim in the High Court on Auckland earlier this month, saying she had to strike a balance between the rights of borrowers and lenders.
The judgment was published on the Justice Minister's website last week.
The regulator alleges Bluestone breached the Credit Contracts and Consumer Finance Act by charging unreasonable early repayment fees on loans that were typically granted for a 30-year term but usually repaid within the first four years.
The commission is seeking a refund for a number of those fees.
Judge Courtney did not accept the commission's argument that the limitation period should not begin until the fee is actually charged rather than from when the loan agreement is made.
She also disagreed with the regulator's contention that its claim was always representative, and that the amended claim was "no more than a particularisation of the existing claim and is not time barred".
Rather, she said each loan pleaded by the regulator represents a new cause of action with each fee charged specific to the terms of the individual loan.
"Although my finding may prevent some borrowers from claiming relief, I nevertheless consider that it would not be reasonable or fair if a borrower could circumvent the CCCF Act's limitation provisions simply by joining a representative claim," the judgment said.
The anti-trust regulator was attempting to extend the timeframe of its initial claim between April 2005 and October 2006 by a further five years.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Tim Hunter on why Veritas is doing it the hard way
- Matthew Hooton on whether Steven Joyce will be the next national leader
- Rodney Hide on why all city planners should be fired
- Nevil Gibson discusses his latest Editor's Insight on films
- The NBR crew throw around some of the week's top stories
- Rob Hosking breaks down the political and economic week that was
- "A tragedy" - David Farrar on his disappointment with Simon Bridges
- New F&P product pipeline exciting, says Macquarie senior investment adviser Brad Gordon
- Taupo Motorsport Park executive director Tony Walker on the park's rebranding
- NZIER senior economist Christina Leung on why she does not think the OCR will hit 2%
- NBR's Cameron Officer talks about the NBR Car of the Year 2015
- John Barnett on Brewer: ‘Boy, has he got a bit to learn’