Peer-to-peer money lender Harmoney is being charged with misleading consumers into thinking they had been pre-approved for a personal loan.
The Commerce Commission alleges letters sent out by Harmoney to half-a-million potential customers gave the impression they had been approved to borrow money, whereas they actually had to go through a normal application process.
Harmoney is a peer-to-peer lender which it's website says is "where everyday people borrow money from, and lend money to, other everyday people online".
It also says it has matched borrowers and lenders for loans totalling $283 million.
Six Fair Trading Act charges will be laid in the Auckland District court covering 27 versions of a letter sent to 500,000 New Zealanders between October 2014 and April 2015.
Harmoney has indicated it intends to plead guilty to the charges.