Latest news with #VanessaHorne
RNZ News
7 days ago
- Business
- RNZ News
El Cheapo Cars to pay customers $340k after failing to give key loan information
Photo: Supplied/ Pixabay CC 0 Car dealer El Cheapo Cars will have to pay more than $340,000 to customers after pleading guilty to seven charges under the Credit Contracts and Consumer Finance Act (CCCFA). The charges were filed by the Commerce Commission and related to El Cheapo Cars' failure to give borrowers key information about their loans. It was also fined $115,000. Commerce Commission general manager for competition, fair trading and credit, Vanessa Horne, said the commission was particularly interested in protecting vulnerable consumer groups. "One of the commission's enforcement priorities is to take action where we consider motor vehicle finance lenders have not met their obligations under the CCCFA. We are particularly focussed on motor vehicle lenders who are providing credit to vulnerable consumers. "For many Kiwis the purchase of a car is one of the biggest financial commitments they will make. The CCCFA is there to protect consumers when they borrow money or buy goods on credit, and under the CCCFA, consumers have a right to be provided upfront information about any changes to their loan." El Cheapo Cars breached its variation disclosure obligations under the CCCFA when providing personal and vehicle finance to borrowers between 2015 and 2021. In his sentencing notes, Judge Sainsbury said disclosure obligations were among the most fundamental protections under the CCCFA. "Particularly those related to ensuring consumers are aware of their rights and obligations under the consumer credit contract." Horne said the decision was a win for consumers and borrowers, who could be entitled to compensation. El Cheapo will have to pay $341,931.46 to affected borrowers. "This case should send a strong signal to motor vehicle financiers that non-compliance with disclosure obligations will not be tolerated. "Transparency and accountability are fundamental to responsible lending and are key to building consumer trust and upholding market integrity." Borrowers who had a loan with El Cheapo Cars which was varied between 2015 and 2021 may be eligible for compensation. The commission said it would contact affected people shortly. The commission began its investigation into El Cheapo in October 2021, after a complaint.
Scoop
7 days ago
- Automotive
- Scoop
El Cheapo Cars Ordered To Compensate Hundreds Of Borrowers Following Criminal Charges
El Cheapo Cars has been sentenced in the Porirua District Court for its failure to provide key information to borrowers about their loans. The Wellington-based motor vehicle trader and finance lender had pleaded guilty to seven charges the Commission filed under the Credit Contracts and Consumer Finance Act (CCCFA). El Cheapo Cars has now been fined $115,000 and ordered to pay $341,931.46 in compensation to hundreds of affected borrowers. Commerce Commission General Manager for Competition, Fair Trading and Credit, Vanessa Horne, says that protecting vulnerable consumer groups is a core priority for the Commission — making this case particularly important. 'One of the Commission's enforcement priorities is to take action where we consider motor vehicle finance lenders have not met their obligations under the CCCFA. We are particularly focussed on motor vehicle lenders who are providing credit to vulnerable consumers. 'For many Kiwis the purchase of a car is one of the biggest financial commitments they will make. The CCCFA is there to protect consumers when they borrow money or buy goods on credit, and under the CCCFA, consumers have a right to be provided upfront information about any changes to their loan,' says Ms Horne. El Cheapo Cars breached its variation disclosure obligations under the CCCFA when providing personal and vehicle finance to borrowers between 2015 and 2021. In his sentencing notes, Judge Sainsbury emphasised that 'Disclosure obligations are among the most fundamental protections under the CCCFA, particularly those related to ensuring consumers are aware of their rights and obligations under the consumer credit contract' and noted 'the importance of lenders adhering to disclosure requirements is undeniable'. Ms Horne says, 'The Commission considers this to be a win for consumers and borrowers affected by El Cheapo's failures, who may be entitled to compensation,' 'This case should send a strong signal to motor vehicle financiers that non-compliance with disclosure obligations will not be tolerated. 'Transparency and accountability are fundamental to responsible lending and are key to building consumer trust and upholding market integrity,' says Ms Horne. Borrowers who had a loan with El Cheapo Cars which was varied between 2015 and 2021 may be eligible for compensation. The Commission will be reaching out to affected parties shortly. Background The CCCFA protects consumers when they borrow money or buy goods on credit. It sets out the rules that must be followed by lenders when they provide loans. The Commission opened its investigation into El Cheapo in October 2021, following a customer complaint. The Commission has also filed civil proceedings against Go Car Finance and Second Chance Finance in the High Court, with allegations that both lenders also breached the CCCFA when providing car finance to borrowers.
Otago Daily Times
16-05-2025
- Business
- Otago Daily Times
More unsafe children's products found at Panda Mart
The Panda Mart store in Christchurch. Photo: Supplied / Vera Jiang The Commerce Commission has identified seven more children's products it considers unsafe as part of its ongoing investigation into bargain store Panda Mart. The items - a baby walker, doll, smartphone toy, fairy cake toy, sunscreen product and two car toys - have been added to a list of 40 children's goods the commission declared to be unsafe in December. Recall notices have been issued for the 47 items sold in Panda Mart's stores in Auckland and Christchurch. The commission has made "legally binding commitments" with Panda Mart for the first time, meaning the outlet needed to halt sales of the products identified or any similar or new products that could be unsafe. "If Panda Mart breaks these commitments, the commission may take court action," a spokesperson from the agency said. "This is to protect consumers while our investigation continues and should reduce the sale of further unsafe goods." The previous list included 11 kinds of walkers, seven kinds of bikes, various kinds of toys, sunscreen products and hot water bags. The unsafe products were deemed to be non-complaint with the product safety standard or an unsafe goods notice. The commission said Panda Mart stopped the sale of the specific products mentioned in the recall late last year but continued to sell similar products. The 47 products listed on the commission's website were no longer sold by Panda Mart, the commission said. Panda Mart products that have been identified as unsafe by the Commerce Commission. Photo: Supplied / Commerce Commission Recall notices on some of these products can be found on the government's Product Safety website, which shows several non-child products were also being recalled, including a gardening tool, an extension cord and three different kinds of table lamps. Vanessa Horne, general manager of competition, fair trading and credit at the commission, said the agency was continuing to investigate the business. "We are actively monitoring this situation and continue to be concerned about the safety of products sold at Panda Mart," Horne said. "One of the commission's enduring priorities is to prioritise product safety issues that are within our regime which have the potential to cause serious harm to consumers, particularly children." Panda Mart has also come to the attention of the Australian government, with a public warning against it being issued in March. Thousands of products, including children's make-up sets, birthday cards, glitter balls and bike helmets, were considered failing to "meet mandatory product safety and information standards, including items that could be dangerous", according to Consumer Affairs Victoria. RNZ has approached Panda Mart for comment.
Scoop
15-05-2025
- Business
- Scoop
Possible Cartel Conduct Sparks Compliance Advice
Press Release – Commerce Commission Trade associations, professional bodies and their members should be aware they could be held liable under the Commerce Act if conduct is shown to be anti-competitive. Penalties for breaching the Commerce Act can be severe, including potential imprisonment. The Commerce Commission is reminding trade organisations and members of their obligations under the Commerce Act after issuing a compliance advice letter to NZ Trade Group (NZTG) about conduct that had the potential to harm competition. Vanessa Horne, General Manager Competition, Fair Trading and Credit said the Commission had investigated allegations of anti-competitive conduct by the membership group, which describes itself as the country's leading network of electricians. 'There were two principal areas of concern. The first related to the group's terms and conditions which contained a non-solicitation clause explicitly prohibiting members from actively soliciting other members' customers, employees and contractors. 'The second related to the NZTG's private Facebook group. Several posts included discussions about rates, with members in some cases appearing to agree to price-match. 'In both cases, the conduct raised issues under section 30 of the Act which prohibits any person entering into a contract or arrangement, or arriving at an understanding, that contains a cartel provision.' As a result of the concerns raised by the Commission, NZTG has amended the terms and conditions of membership and included a permanent banner on its Facebook group, warning against discussion and conduct that could be considered anti-competitive. Ms Horne said while prompt NZTG action had concluded the investigation in this case, membership organisations should take this as an opportunity to review their own practices. 'Trade associations, professional bodies and their members should be aware they could be held liable under the Commerce Act if conduct is shown to be anti-competitive. Penalties for breaching the Commerce Act can be severe, including potential imprisonment.' A copy of the compliance advice letter is available on the Commission's case register.
NZ Herald
15-05-2025
- Business
- NZ Herald
‘Possible cartel conduct': Sparky association changes policy after anti-competition accusation
And its private Facebook group had featured posts from members discussing rates, with some 'appearing to agree to price-match', the Commerce Commission said. 'In both cases, the conduct raised issues under section 30 of the [Commerce] Act, which prohibits any person entering into a contract or arrangement, or arriving at an understanding, that contains a cartel provision,' the Commerce Commission's Vanessa Horne said. The commission then issued NZTG with a compliance advice letter. Horne, the general manager of competition, fair trading and credit, said NZTG had made changes as a result of the investigation. It had changed its terms and conditions for members and had placed a permanent banner on its Facebook group warning members against discussion and conduct that could be considered anti-competitive. NZTG's remedies had concluded the commission's investigation, she said, adding that other organisations should learn from this. 'Trade associations, professional bodies and their members should be aware they could be held liable under the Commerce Act if conduct is shown to be anti-competitive. Penalties for breaching the Commerce Act can be severe, including potential imprisonment.'
