The Commerce Commission has signed a settlement agreement with finance company Linsa Finance Limited and has discontinued High Court proceedings.
Linsa Finance has agreed to return $350,000 to about 900 current and former borrowers, for failing to disclose key information required under the Credit Contracts and Consumer Finance Act 2003 (CCCFA).
Linsa Finance has offices in Manurewa and Tauranga, offering secured and unsecured personal loans of up to about $4,000.
It accepts that between 6 June 2015 and 29 March 2016 1,721 of its loan contracts failed to include:
- an accurate statement of the borrower’s cancellation rights
- any statement of the borrower’s right to apply for relief on grounds of unforeseen hardship, and how to do so
- the frequency with which continuing disclosure statements would be made