Zee Shop in court over 'incomprehensible' loan contracts

Zee Shop in court over 'incomprehensible' loan contracts

Another mobile trader has appeared in court, accused of fleecing customers with "incomprehensible" contracts.

Zee Shop is accused by the Commerce Commission of failing to provide its customers with the legally required information relating to their loans.

"This included failing to state the amount of each payment, when the first payment under the contract was due, and the frequency with which debtors would be required to make payments," the commission said in a statement.

Zee Shop's contracts are also accused of being "difficult to read and understand".

"The terms and conditions were in two condensed columns with no headings, in a poor layout and format and with grammar that made some of the clauses incomprehensible," says the commission.

Zee Shop was not part of the Commerce Commission's initial investigation into mobile traders, which found 31 of 32 companies looked at weren't meeting their obligations under the Fair Trading and Credit Contracts and Consumer Finance Acts.

Traders that have been fined so far include Goodring, Betterlife, Flexi Buy, Ace Marketing and SmartStore.

Newshub.

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