UDC Finance to refund borrowers after charging unreasonable fees
6 May, 2021 09:57 PM
3 minutes to read
UDC finance provides loans typically $10,000 or more for the purchase of motor vehicles. Photo / File
UDC finance provides loans typically $10,000 or more for the purchase of motor vehicles. Photo / File
NZ Herald
UDC Finance will refund borrowers after it was found to have charged unreasonable fees.
The finance company, which provided loans of typically $10,000 or more for the purchase of motor vehicles, reached a settlement deal with the Commerce Commission.
Between June 2015 and September 2016, UDC charged a $45 dishonour fee when a borrower failed to make a scheduled loan repayment. If the borrower remained in default seven days after the scheduled payment was missed, UDC then charged a late-payment fee. That late-payment fee varied between $45 and $73, from June 2015 to February 2021.