Harmoney signals need to change fees

The peer-to-peer lender opted to change its fee structure late last year, moving to a flat fee of $375 for borrowers, instead of a percentage charge.

It followed a Commerce Commission inquiry into the fees. It had been suggested they might have breached the Credit Contracts and Consumer Finance Act, which requires that admin fees on loans are linked to the amount of work involved in processing the lending.

Neil Roberts said the decision to change them was made before the Commerce Commission reached a conclusion.

Although he said he was confident the percentage fee structure was legitimate and the legal advice Harmoney received had been sound, Harmoney wanted the regulators to be completely comfortable with the way it operated.