Dealer Finance Limited response to Media Release by Commerce Commission
Dealer Finance’s newly appointed General Manager of February 2016, Darren Musson, has responded to the media release by the Commerce Commission (Commission) by stating that Dealer Finance’s directors, management and staff have co-operated fully throughout the investigation by the Commission.
Dealer Finance is co-operative company of approximately 20 car dealership members. The company has been trading for 43 years and has a proud history of assisting thousands of customers with the purchase of their motor vehicles and motor homes. Dealer Finance is managed by professional team and prides itself in being open and transparent.
The company has invested significantly in the necessary resources required to investigate and resolve the identified issues in order to bring the matter to a successful conclusion.
The investigation established that Dealer Finance had not credited part repayments made by customers against the unpaid balance as soon as practicable and as a consequence charging the borrower interest on an incorrect unpaid balance.
This was an inadvertent mis-match between Dealer Finance agreeing to let its customers pay the contracted monthly loan payment by weekly or fortnightly payments (at the request of our customers), the wording of our contract terms, our IT system and the requirements of the Credit Contracts and Consumer Finance Act 2003 (which came into effect 2005).
Dealer Finance has taken a proactive approach to contacting affected customers. Letters have been sent and public notices will be issued in local newspapers during April and May to ensure that the company does everything possible to locate and refund affected customers.
These letters have been sent by mail to the customers last known address. Allowing for postage delivery we would ask that customers wait until 18th April before contacting our office. By that date they will have received one of three letters advising of their entitlement to a refund and how this has either already been paid or how it is proposed to be refunded. The only customers which should need to contact our office are where we have asked for a confirmation of an address or if the customer has not received a letter by the 18th April.
Darren Musson
General Manager
