Debt collectors are being warned by the Commerce Commission not to overcharge fees they impose when they repossess property.
Baycorp has agreed to refund 2370 debtors or reduce their balances, totalling $3,457,634 in a settlement with the commission.
Commission chairman Mark Berry says the settlement is not just about Baycorp - but is a signal to all companies involved in lending, repossession and debt collection.
Dr Berry says there is a basic rule that fees can only be claimed up to the point where goods have been repossesed and sold, and the clock simply stops then.
He says this is something the industry doesn't seem to understand.
