Common fees lenders can charge
It's fair for lenders to ask you pay the fees and other costs listed on this page, so long as:
- it's an amount that covers costs but makes no profit
- daily costs are no more than 0.8% of the unpaid loan balance in interest and fees
- you are given clear and accurate information about fees and when they will be charged, eg in your credit contract
- you are treated fairly by the lender and any of their agents, eg debt collector.
These rules are in the Credit Contracts and Consumer Finance Act (CCCFA).
The daily cost is the amount high-cost lenders charge each day for providing credit. It affects how fast your debt grows.
It’s a percentage of the loan’s unpaid balance, and includes:
- credit fees
- charges for optional services
- other fees passed on by your lender.
The CCCFA limits daily costs to no more than 0.8% of the unpaid balance in interest and fees per day when averaged across the loan term.
Lenders must also act promptly if you fall behind on payments — it's unfair to let even fair fees and interest build up over time.
To get an idea of a fair amount for a fee, check what other lenders charge. Is it within this range, or much higher?
What lenders must do
Fees a lender may charge(external link) — Commerce Commission
Fees others might charge
If things go wrong
If you think a fee is too high, or should not be charged, follow these steps — you might not need to do all three:
- Contact the lender/debt collector: Talk to the bank or finance company as soon as possible. Many issues can be solved at this step.
- Contact the lender's dispute resolution scheme: Get independent help if you and the lender can't agree.
- Report it to the Commerce Commission: This government agency gathers information to take action against lenders and debt collectors who break the rules. It doesn't take on individual cases.
1. Contact the lender
Before you make contact, read our information on:
- your rights
- how to complain.
A free financial mentor can help you prepare, or can talk to the lender for you. Start by contacting the free helpline MoneyTalks.
Contact information(external link) — MoneyTalks
You must be given fee information in writing, under the Credit Contracts and Consumer Finance Act (CCCFA). Lenders and debt collectors cannot mislead you in adverts and other information under the Fair Trading Act, eg about fee amounts.
You may get a full or partial refund if the lender:
- didn't tell you about a fee, or the possibility of the fee, before charging you
- gave incorrect information, eg contract says $25 admin fee but you are charged $75
- set higher fees so they could make a profit.