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Bluestone Mortgages loses court battle with NZ regulator

Australian-owned Bluestone Mortgages has lost a High Court battle to strike out claims brought by Commerce Commission.Bluestone targets people who are not eligible for normal borrowing criteria. Its customers include immigrants, the elderly and the unempl

NZPA
Fri, 29 Oct 2010

Australian-owned Bluestone Mortgages has lost a High Court battle to strike out claims brought by Commerce Commission.

Bluestone targets people who are not eligible for normal borrowing criteria. Its customers include immigrants, the elderly and the unemployed, who may not have established financial records.

The commission filed civil proceedings against Bluestone Mortgages, Trustees Executors and TEA Custodians (Bluestone) after forming the view that a deferred establishment fee when mortgages were repaid early breached relevant provisions in the Credit Contracts and Consumer Finance Act 2003.

It filed proceedings seeking orders against Bluestone to pay compensatory sums to various borrowers and Bluestone sought a summary judgment against the commission and an order striking out the commission's claim.

Bluestone's application to strike out the commission's amended statement of claim was refused and its was not granted leave for the application for summary judgment.

NZPA
Fri, 29 Oct 2010
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Bluestone Mortgages loses court battle with NZ regulator
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