A truck shop that failed to tell its customers about credit repayments and deceived some has been hit with a $50,000 in an industry-wide crackdown.
A truck shop company that deceived its customers about credit repayments has become the first to cop a fine following a crackdown on the industry.
Flexi Buy was one of two companies singled out in a damning report by the Commerce Commission into the truck shop industry last year.
It was charged with failing to disclose key information about credit repayments - including how big payments were, how often and rules around cancelling - as well as describing key information in a misleading way.
Sentencing Judge Chris Field said the company - which is no longer operating - had been "entirely reckless in its dealings with members of the public".
He fined it $50,000 and ordered it to pay another $3400 in damages to customers in the first sentencing following the investigation.
"It is notable that in this case the judge indicated that significant harm and stress no doubt occurred to debtors as they tried to understand their rights," Commissioner Anna Rawlings said after the sentencing.
There are still three other cases mobile trader cases in the court and four more are being investigated by the Commerce Commission.
Ms Rawlings said legal changes since then would allow further companies to receive heavier fines than those handed out to Flexi Buy.
The commission's 2015 report found out of 32 mobile shops it looked at, 31 did not, to varying extents, comply with all of their legal obligations.
Flexi Buy sold electronic goods, such as computers, phones and TVs door-to-door in South Auckland, Whangarei, Tokoroa, Murupara, Porirua, Kaikohe, Hastings and Gisborne.
2016 NZN, NZCity
Other Business News