Kiwi Auto Finance Limited; Annu Kandola; Rohit Takyar

The Commission filed civil proceedings in the High Court against Kiwi Auto Finance Limited (Kiwi Auto Finance) in relation to breaches of the Lender Responsibility Principles under the Credit Contracts and Consumer Finance Act 2003 (CCCF Act) for failing to make reasonable inquiries as to whether borrowers could make payments under consumer credit contracts without suffering substantial hardship and failing to keep adequate records of inquiries. In addition, Kiwi Auto Finance failed to provide adequate disclosure to borrowers (both at the outset of the credit contract, and during the repossession process). The Commission has also filed proceedings against Kiwi Auto Finance’s directors under section 59B of the CCCF Act for failing to exercise due diligence to ensure Kiwi Auto Finance complied with its duties and obligations under the Act. In the proceedings the Commission is seeking declarations, and pecuniary penalties.

Kiwi Auto Finance and its directors have consented to the Commission seeking orders following a settlement between the parties prior to the proceedings being filed.

Kiwi Auto Finance admitted that it failed to comply with applicable Lender Responsibility Principles (section 9C(1) by failing to comply with sections 9C(2)(a)(ii), 9C(2)(a)(iii) and 9C(3)(a)(ii)), failed to keep adequate records about inquiries it made, and failed to provide adequate initial disclosure under section 17, and serve repossession notices which contained all of the required information under sections 83G and 83V of the CCCF Act and the associated CCCF Regulations. Kiwi Auto Finance’s directors have admitted that they breached section 59B of the CCCF Act.

The enforcement action follows an investigation into Kiwi Auto Finance’s responsible lending practices.