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Rates & Fees

Here you will find additional information on consumer and commercial loans, contracts, interest rates, fees, early repayments, defaults, and more.

Consumer and Personal Loans (CCCFA)

These are loans where the funds are borrowed in personal names and are for personal use.

Consumer and Personal Loans are covered by the Credit Contracts and Consumer Finance Act 2003

Loans up to a maximum of $100,000.00.  We lend to a Maximum LVR of 80%.

Bank consent and Deed of Priority not required.

Interest Only, Principle & Interest or Capitalised Interest (short term). Flexible lending terms from 1 month to 5 years.

INTEREST RATES AND FEES

  • Consumer Credit Contract annual interest rates range from 17.95% to 29.95%.
  • All our interest rates are fixed for the whole term of the loan contract.
  • Establishment fees range from $50.00 to $1,000.00
  • The annual interest rate that will apply to a Consumer Credit Contract will be within the above range and the applicable rate is determined and offered to you based on your credit profile, financial position, loan amount and the security offered.
  • Interest is charged and debited to the loan monthly on the 22nd day of the month

CONSUMER AND PERSONAL LOANS (CCCFA) RATES AND FEES

The following fees may be payable by you for the following:

Fee Type Amount Explanation of Fee
Establishment Fee $50 – $1000 This is a credit fee to compensate us for some of our reasonable costs relating to the establishment of this loan.
LINZ Search Fee $5.00 This is for the costs we incur when we complete searches at LINZ in
relation to our security in this loan.
Call to Property $70 – $200 This is a fee for an optional service that you have chosen.
Veda Search Fee $11.00 This is for the costs we incur when we obtain a credit report.
LINZ Registration $435.00 This is for the costs we incur when our agent completes registration at LINZ in relation to our security in this loan.
Legal Fees $1,000 – $3,000 Our legal fees are variable based on the direct cost to us for legal services in preparing the loan contracts, checking security details, providing instructions to your solicitor. A fixed quote will be given when we provide a Letter of Offer if legal fees are to be incurred.
PPSR Fee $2.00 – $16.00 This is for the costs we incur in searching the PPSR and/or registering an interest on the PPSR
Brokerage Fee Variable based on the direct costs charged by your broker. This is a third-party charge due to your broker.

DEFAULT AND OTHER FEES THAT MAY BE CHARGED TO YOU

Visit Fee $30.00 If we deem it necessary to visit you in person at your home or place of work in relation to a missed payment(s) or to any other default you commit under this agreement.
Enforcement Fee Variable based on direct costs incurred by us. In the case of enforcement, including Court or Disputes Tribunal proceedings and seizure and sale, we will charge to your account all court and tribunal costs and actual solicitors fees and disbursements (assessed on a solicitor client basis) and debt collection agency fees and disbursements and the costs and disbursements of valuers, auctioneers, process servers and any agents of the lender in effecting such enforcement plus any other necessary disbursements as those costs are ascertained
Mortgage Discharge Fee $30.00 For preparation of mortgage discharge authority for borrowers solicitor.
Discharge of Mortgage $210.00 If you have repaid your loan in full and request that our Solicitor attends to the registration of a discharge of mortgage.

EARLY FULL PREPAYMENT OF LOAN

If you pay the unpaid balance in full before the final payment is due (full prepayment) the Lender reserves the right to charge you an early repayment fee to compensate the Lender for any loss resulting from full prepayment, in accordance with section 43 of the Credit Contracts and Consumer Finance Act 2003 (“the Act”).

The early repayment fee is calculated as 30 days interest at the Annual Interest Rate less 7.0% (being the Lender’s savings for its funding costs) on the outstanding principal balance of the loan at the date of repayment.  This procedure can be expressed as the following formula:

Where:

  • ERF means early repayment fee
  • PB equals the principal balance of the loan at the date of repayment.
  • AIR means the Annual Interest Rate which is a fixed rate set out in this agreement

In the event that the period remaining on the contract is less than 30 days then number of days in the formula (currently expressed as 30 days) will be adjusted accordingly.

In addition, you will be required to pay to the Lender a “Prepayment Administration Fee” of $30.00, which represents the Lender’s average administrative costs arising from full prepayment in accordance with section 51(1)(b) of the Act.

We do not use the procedure specified regulation 9 or 11 of the Credit Contracts and Consumer Finance Regulations 2004 to calculate our loss on early repayment.

DEFAULT INTEREST RATES

Default interest is payable in the event of a default in payment and while the default continues.   Default interest is charged from the time you fail to make a due payment until the arrears are paid. Default interest charges are calculated by multiplying the amount of arrears at the end of the day by the Daily Default Interest rate.

The Daily Default Interest rate is calculated by dividing the Annual Default Interest rate by 365 to give a daily rate. Interest is charged to your account on the 22nd day of every month.

Default interest rates range from 25%-39% and are determined according to the annual interest rate for each given loan contract.

HARDSHIP

For clients that have a Consumer Loan Contract with us which is covered by the Credit Contracts and Consumer Finance Act 2003. This hardship provision is not available for those that signed a Commercial Loan Contract.

If you suffer, or anticipate that you will suffer, an unforeseen hardship you can make an application in writing to us.  Please send your application to:

Attention: Sean Donoghue, the Managing Director
PO Box 34584, Birkenhead, Auckland
sean@abcomfinance.co.nz

You can ask us to consider a change to your credit contract to:

  1. Extend the term of the contract and reduce the amount of each payment due under the contract accordingly;
  2. Postpone, during a specified period, the dates on which payments are due under the contract; or
  3. Extend the term of the contract and postpone, during a specified period, the dates on which payments are due under the contract.

If you make an application for hardship assistance, we will:

  1. Acknowledge your application within five working days.
  2. Request any further information that we need from you within 10 working days after receiving the application.
  3. Consider your application within 20 working days of our receipt of the application or 10 working days after we receive the further information we’ve requested from you.

COMPLAINTS

If you have a problem, concern or complaint about any part of our service please contact the Managing Director:

Sean Donoghue
PO Box 34584, Birkenhead, Auckland
09 480 6398, 0274499916
sean@abcomfinance.co.nz

We have an internal complaints process designed to efficiently handle any concerns you may have.  If you have a complaint we will:

  1. Acknowledge your complaint within five working days.
  2. In most cases investigate and resolve your complaint within two weeks. If this is not possible, we will advise you of progress within 10 working days.
  3. We will tell you within 20 working days if we are unable to resolve your complaint.

If we cannot reach an agreement on your complaint, or you are not satisfied with our decision you may refer your complaint to an independent dispute resolution scheme by contacting.

Financial Disputes Resolution
Free Phone 0508 337 337
Free Post 231075, PO Box 5730, Wellington 61445 enquiries@fdr.org.nz
www.fdr.org.nz

For clients that have a Consumer Loan Contract with us which is covered by the Credit Contracts and Consumer Finance Act 2003. This scheme is not available for those that signed a Commercial Loan Contract.

The external dispute resolution scheme is a free independent service available to assist you to resolve specific complaints.

REGISTRATION OF FINANCIAL SERVICES PROVIDER

Creditor registration name – Abcom Finance Limited     Registration number – FSP35621

Commercial and Business Loans (non CCCFA)

These are loans where the majority of funds being borrowed are for Commercial or Business use or the borrower is a Company or Trust. The borrower needs to be able to show evidence of this.

Loans up to a maximum of $500,000.00

Flexible lending terms from 1 month to 5 years.

We lend to a Maximum LVR of 70%

Bank consent and Deed of Priority not required.

Interest Only, Principle & Interest or Capitalised Interest (short term).

INTEREST RATES AND FEES

  • Interest rates range from 14.95% to 25.95%
  • Establishment fees range from 2% to 10% of the loan value and are capitalised over the loan term.
  • All our interest rates are fixed for the whole term of the loan contract.
  • The annual interest rate that will apply to a Commercial or Business loan contract will be within the above range and the applicable rate is determined and offered to you based on your credit profile, financial position, loan amount and the security offered.
  • Interest is charged and debited to the loan monthly on the 22nd day of the month.

COMMERCIAL AND BUSINESS LOANS (NON CCCFA) RATES & FEES

Fee Type Amount Explanation of Fee
Establishment Fee 2%-10% of loan value Payable on settlement of the loan at end of the loan term
Legal Fees $1,000 – $3,000 Variable based on the direct cost to us for legal services in preparing the loan contracts, checking security details, providing instructions to your solicitor. A fixed quote will be given when we provide a Letter of Offer.
Visit Fee $50.00 If we deem it necessary to visit you in person at your home or place of work in relation to a missed payment(s) or to any other default you commit under this agreement.
Enforcement Fee Variable based on direct costs incurred by us. In the case of enforcement, including Court or Disputes Tribunal proceedings and seizure and sale, we will charge to your account all court and tribunal costs and actual solicitors fees and disbursements (assessed on a solicitor client basis) and debt collection agency fees and disbursements and the costs and disbursements of valuers, auctioneers, process servers and any agents of the lender in effecting such enforcement plus any other necessary disbursements as those costs are ascertained
Mortgage Discharge fee $50.00 For preparation of mortgage discharge authority for borrowers solicitor.
Discharge of Mortgage $230.00 If you have repaid your loan in full and request that our Solicitor attends to the registration of a discharge of mortgage.
Brokerage Fee Variable based on the direct costs charged by your broker This is a third-party charge due to your broker.

EARLY FULL PREPAYMENT OF LOAN

If you pay the unpaid balance in full before the final payment is due (full prepayment) the Lender reserves the right to charge you an early repayment fee to compensate the Lender for any loss resulting from full prepayment.

The early repayment fee will be 30 days’ interest at the rate referred to in this agreement. In the event that the period remaining on the contract is less than 30 days then the maximum compensation will be adjusted accordingly.

In addition, you will be required to pay $50.00, the Lender’s average administrative costs arising from full prepayment.

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