25 Feb 2013

Commission agreement with Marac Finance

12:33 pm on 25 February 2013

The Commerce Commission has reached an agreement with Marac Finance, following the company's decision to refund almost $600,000 to 1000 customers.

The refunds are to borrowers who paid their loans back early between 2006 - 2010, but were not refunded premiums for their loan repayment insurance.

The Credit Contracts and Consumer Finance Act requires that an appropriate portion of a premium is refunded to a customer when they repay their loan early, which reduces the final balance payable on the loan.

The commission believes Marac was in breach of the Act.