Auckland loan shark banned from lending

  • 05/10/2015
Auckland loan shark banned from lending

An Auckland loan shark who targeted casino users has been fined and banned from lending.

Yuan Rong Yang, Sunway Finance Limited former owner, who lent money to Auckland's Chinese community for 17 years, was fined $22,500 and banned from lending indefinitely at Auckland District Court.

He earlier pleaded guilty to two charges of failing to properly inform borrowers.

Commerce Commissioner Anna Rawlings said Yang typically had a verbal agreement with his customers and did not give them basic information including interest charged, credit fees and charges, and the amount and number of payments required.

Yang loaned money personally and through his business. He targeted potential borrowers at SkyCity Auckland Casino where he was served a trespass notice in 2012.

He charged borrowers about $50 per week interest on a loan of $1000 - an annual interest rate of about 260 per cent.

Judge Mary Sharp described him as "an unscrupulous lender, a loan shark" charging "exorbitant and appalling" interest rates.

He was also ordered to pay the complainant $3000 and six existing loan contacts have been quashed.

Lenders are legally required to ensure borrowers can properly understand loan obligations.

Yang told the commission he did not know his obligations as a lender or that he needed to be registered.

NZN