An unregistered and uncertified lender has been charged after allegedly providing personal loans illegally to members of the Tongan community in South Auckland.
Ilaisaane Malupo, trading as Nane Easy Loan Finance Services NZ (Nane Loans), provided loans to borrowers in South Auckland from March 2024.
An investigation was launched by the commission after receiving inquiries, including from a financial mentor, about Malupo’s lending practices which were allegedly causing harm to borrowers.
The Commerce Commission alleges Malupo’s terms including high interest rates of up to 15% charged on a weekly basis, which would double if borrowers failed to repay the loans within 28 days; and late payment fees of up to $10 per day.
All lenders must be registered and certified to provide consumer credit.
“Often these kinds of lenders are a last resort for people who are struggling to borrow from reputable lenders,” Associate Commissioner Joseph Liava’a said.
“Many people who borrowed from Ms Malupo were already under financial pressure and on low incomes, so irresponsible lending could have had a big impact on borrowers and their families.
“Some of the borrowers indicated they needed to borrow money to buy food or pay off other loans.”
Liava’a said some borrowers “resorted to selling their sentimental possessions or missing rent payments” to pay off the loans.
In some cases, the commission alleged Malupo – who operated her business on social media – threatened to ‘name and shame’ borrowers who failed to repay their debt on Facebook or Tongan media sites until repayment was made.
“Public shaming is never OK and could put borrowers in a vulnerable position to avoid being called out for their friends and family to see,” Liava’a said.
The commission has filed criminal charges in the Auckland District Court.
She has been charged with providing a financial service without being registered and for attempting to deceive or knowingly mislead the Commission on any matter before it.
