The second-hand retail trader, Cash Converters, will pay five community groups donations totalling $60,000, after the company charged illegal fees.
The fees were for so-called pay day loans - of up to $1,000 - which had to be repaid within four weeks
The Commerce Commission has found Cash Converters was charging illegal default fees when the loans were first taken out.
Even if people repaid the loan within its terms, the default fee was never refunded.
Companies are legally only able to charge an establishment fee for pay day loans, and for no more than the cost of setting it up.
Cash Converters says it accepts it breached the law and has changed its scheme.