Predatory franchise lending in New Zealand?

April 30, 2008

The New Zealand-based Exposing Unacceptable Financial Activities, EUFA, group sent out an email press release on April 25th specifically citing the U.S. experience in the sub-prime mortgage debacle and the allegations regarding predatory lending practices.

EUFA spokesman Gray Eatwell said from Southland:

“Documents provided to Blue Chip investors by some lenders show serious inaccuracies that indicate unconscionable lending practices” ” As a consequence of the deception and falsifications involved it is unlikely that such documentation would withstand the scrutiny of the Crimes Act and other such law”

Mr. Eatwell further added:

“when we look at the Crimes Act S240 Obtaining by deception or causing loss by deception and S242 False statement by promoter, etc for example, some very serious questions about the Blue Chip loans emerge. Such questions must be adjudicated”.

It would appear that a group of Blue Chip borrowers has formed and are starting to organize for lawsuit:

…any other investors who is unhappy with the way the documentation of their loan was presented to them should make contact with EUFA immediately.

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