The aged-care company voluntarily reported its possible non-compliance to the Commerce Commission after the regulator sent a reminder to lenders in May about their requirements regarding consumer credit contracts and lending practices.
Bupa Retirement Villages is compensating some residents who took on loans for occupation rights or a heat pump after acknowledging it had not met all the disclosure requirements of the Credit Contracts and Consumer Finance Act.
The aged-care company voluntarily reported its possible non-compliance to the Commerce Commission after the regulator sent a reminder to lenders in May about their requirements regarding consumer credit contracts and lending practices.
Some retirement villages offer credit to residents to assist them to enter their village or to acquire goods once they are living there and it was important that the residents got all the information they needed when taking out a loan or buying goods on credit, commissioner Anna Rawlings said in a statement.
"Bupa corrected its disclosure and is in the process of compensating affected debtors," she said. "We issued compliance advice to the company in this instance and acknowledged the remedial steps it had taken, and continues to take, and its proactive approach to alerting us to the issue."
About 100 residents at the Bupa Retirement Village entered into a heat pump loan or a loan assisting them to enter into an occupational rights agreement, the regulator said.
(BusinessDesk)
