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.