MTF
02/07/2015 15:56
GENERAL
NOT PRICE SENSITIVE
REL: 1556 HRS Motor Trade Finances Limited
GENERAL: MTF: Supreme Court grants leave to hear Sportzone case
The Supreme Court has granted MTF and Sportzone Motorcycles leave to appeal
the Court of Appeal judgment in the Sportzone case. The Court's decision
allows a continuation of the key arguments regarding the costs a lender can
reasonably recover, through a fee charged to a borrower, under the
"unreasonable fee" provisions of the Credit Contracts and Consumer Finance
Act 2003.
The "unreasonable fee" provisions apply to all businesses that provide credit
to consumers, including banks, finance companies and retailers.
The Court has declined to hear one point that it says is specific to MTF and
its commercial relationship with its shareholder originators. Consequently,
the Supreme Court decided this argument is not of general or public
importance or a matter of general commercial significance.
The total amount by which the fees charged by MTF that have been held to be
unreasonable, and would be repaid to 39 Sportzone borrowers if the decision
is upheld, is less than $10,000.
The date for a hearing is likely to be late 2015 or early 2016.
Glen Todd
Chief Executive Officer
End CA:00266558 For:MTF Type:GENERAL Time:2015-07-02 15:56:56
