Christchurch car finance company to repay customers
The Commerce Commission has reached a settlement with motor vehicle lender, Dealer Finance Limited (Dealer Finance), to pay back or credit at least $440,000 to customers who were overcharged interest on their loans from 2005.
The Commerce Commission has reached a settlement with motor vehicle lender, Dealer Finance Limited (Dealer Finance), to pay back or credit at least $440,000 to customers who were overcharged interest on their loans from 2005.
Dealer Finance is owned by a group of Christchurch car dealers. It provides finance to borrowers under consumer credit contracts so that they can buy motor vehicles.
The Commission’s investigation found that Dealer Finance breached the Credit Contracts and Consumer Finance Act 2003 (CCCFA) because it did not credit borrowers’ accelerated or lump sum payments to their loan as soon as practicable. As a consequence, customers were charged interest on an incorrect unpaid balance. Around 5,800 loans were affected.
Auckland Consumer Manager John Lyall said, “All lenders should be aware of their legal responsibilities when offering consumer credit contracts to borrowers. Calculating interest is part of the core business of lenders and we expect them to get it right.”
“However, in this instance Dealer Finance accepted it had breached the law and it has taken steps to fix the problem and has agreed to provide compensation to affected customers.”
Dealer Finance has already adjusted the current loans affected and it is working on contacting people who have paid off their loans and who were overcharged $200 or more. It has also agreed to refund other affected customers who contact them and provide necessary details.
You may be eligible for a refund if you had a loan through Dealer Finance or one of the car dealers listed below between April 2005 and April 2015, and you made accelerated or lump sum payments. If you have a current loan with Dealer Finance your loan balance should have already been adjusted with any refunds.
If you think you might be entitled to a refund and haven’t been contacted by Dealer Finance you can email them at enquiries@dfl.co.nz.
Background
The settlement agreement with Dealer Finance Limited is available on our Enforcement Response Register.
Affected dealers
TRUST CARS/CARTEL CARS | 464 Ferry Road | Christchurch |
73 Moorhouse Avenue Ltd | 73 Moorhouse Avenue | Christchurch |
Adams Bardsley Cars Ltd | 130 Ferry Road | Christchurch |
Affordable Caravans Limited | 512 Blenheim Road | Christchurch |
Austin Motor Company Limited | 275 Colombo Street | Christchurch |
Auto Parts Ltd T/a Auto International | 240 Litchfield Street | Christchurch |
Blackadder Motors (2004) Ltd | 200 Ensors Road | Christchurch |
Car City Christchurch Limited | 206 Ferry Road | Christchurch |
Carey Motors | 185 Ferry Road | Christchurch |
Cars 2 Go | 260 Ferry Road | Christchurch |
Chantilly Holdings Limited | 200 Ensors Road | Christchurch |
Cheyenne Wholesale Limited | 20 Bucknell Street | Christchurch |
Dennis Tullett Motors Ltd | 422D Hereford Street | Christchurch |
Economy Cars Limited | 538 Moorhouse Avenue | Christchurch |
First Class Cars & Commercials | 12 Aldwins Road | Christchurch |
Forsyth Motors | 213 Main South Road | Christchurch |
Gardner Cars | 3 Moorhouse Avenue | Christchurch |
Great Cars/The Car Bazaar 1 Ltd | Unit 3 1030 Ferry Road | Christchurch |
John Sergel Cars Limited | 265 Colombo Street | Christchurch |
Johnston Motor Company Limited | 213 Main South Road | Christchurch |
Lifestyle Marine Limited | 129 North Avon Road | Christchurch |
Mecca Motors Limited | 534 Moorhouse Avenue | Christchurch |
Milligan Cars Limited (No 2) | 69 Moorhouse Avenue | Christchurch |
Moorhouse Express Limited T/A Car City Christchurch | 206 Ferry Road | Christchurch |
Motor Home Centre | 449 Ferry Road | Christchurch |
Nigel Thompson Motor Company Limited | 175 Ferry Road | Christchurch |
NZ Classic Cars T/A Neat Cars | 301 Main South Road | Christchurch |
Peter Keech Motors Ltd | 208 Waltham Road | Christchurch |
R B McGregor Limited | 219 Waltham Road | Christchurch |
R J Norman Investments Ltd T/A Ross McGregor Motors | 219 Waltham Road | Christchurch |
Riccarton Car Sales Ltd | 134 Ferry Road | Christchurch |
Rob Donaldson Cars | 504 Moorhouse Avenue | Christchurch |
Rob Lewis Motor Company | 541 Moorhouse Avenue | Christchurch |
Rutherford Cars No 2 | 31 Moorhouse Avenue | Christchurch |
Simons Wholesale Ltd | 20 Fitzgerald Avenue | Christchurch |
Stadium Cars Limited | 564 Moorhouse Avenue | Christchurch |
Sun City Motors | 2 Appleby Highway | NELSON |
The Car Bazaar (No 3) | 550 Moorhouse Avenue | Christchurch |
Trade In Centre Ltd | 200 Ferry Road | Christchurch |
Waterview Cars - The Car Bazaar 4 | Unit 3/1030 Ferry Road | Christchurch |
Wayne Hill Motors Limited | 313 Lincoln Road | Christchurch |
Wayne Timms Motor Court Ltd | 37 Formans Road | Christchurch |