The Court of Appeal has dismissed Motor Trade Finance and Sportzone Motorcycles' appeal in a long running dispute over fees that was originally brought by the Commerce Comission.
The court has upheld an earlier judgement that found the companies charged unreasonable fees on 39 finance contracts, between 2005 and 2009.
Commerce Comissioner Anna Rawlings said the Court of Appeal provided a clear statement that credit fees should only cover costs that were closely related to a particular loan, and should not be used to recover general business costs or to generate a profit.
The court instructed Motor Trade Finance and Sportzone to pay the Commission's costs.
The companies now have 20 days to seek permission to appeal the ruling to the Supreme Court.