13 Feb 2010

Commission to act against finance company

8:10 am on 13 February 2010

The Commerce Commission intends to proceed with action against finance company Budget Loans, a subsidiary of listed Cynotech Holdings.

The action relates to non-disclosure of letter fees, charging interest after repossession of goods and applying goods to contracts as security after repossession.

Cynotech managing director Brett Tawse says the charges relate to 61 out of more than 5000 loans and the company will review the issue with its legal advisers.