Originally Posted by
percy
Looks to me as though Harmoney thought they had ticked all the boxes before they started business,so the Commerce Commissions challenges appear to have blindsided them.
The Commerce Comission has been very successful tidying up shonky unacceptable fees being charged to borrowers, via legal cases such as the MTF Sportzone case.Every motorvehicle lender changed their fees well before the case hit the courts.Job done.
Person to Person lending appears to be in the Commerce Comission's view just that Person To Person, rather than through a middle man, such as Harmoney.
It would seem to me either the Government has to change the rules to make room for a middleman ,such as Harmoney,or Harmoney goes out of business unless they can find some sort of "reward" that is both profitable to them and is acceptable to the Commerce Commission.
Letting it go on for years to be sorted out,as did the Sportzone case,does not appear to be an option to me.
As a holder of Heartland shares, I do have some concerns for the capital they put into Harmoney,and for the ongoing profits from the loans they have made via Harmoney.
I am not sure whether Heartland will be in any position to qualify any of my concerns at their upcoming agm.as the matter will be "coming before the courts".
Is it material to Heartland?.Yes.