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Finance company continued charging hundreds of people fees, even after repossessions

A personal finance company has been warned by the Commerce Commission after an investigation found they had wrongly charged debtors interest and fees - two of them for 18 years.

Source: Seven Sharp

Financial Holdings Limited (FHL), which is directed by Kane Oldham and Simon Oldham, provides personal and commercial finance, mostly for second-hand car sales.

The Commission said an investigation into FHL's conduct had been underway since 2018, after concerns were raised by budget advisors.

It found that FHL had been charging people fees and interest after it had already repossessed assets from them - which contravenes the Credit Contracts and Consumer Finance Act 2003.

The Commission also found that FHL had issued repossession notices which did not include all of the information required by law.

The investigation found that 306 people were unlawfully charged in this way, and FHL has said it will now reassess all of its contracts, and apply credits or refunds to those people.

Commerce Commission Chair Anna Rawlings said "the law does not allow lenders to charge fees or interest after secured property has been repossessed and sold.