Christchurch-based finance lending company Moola has collapsed.

The company described itself as “100% digital lender providing fast, no-hassle loans outlet.”

Moola was heavily promoted on commercial radio advertising “fast lending.”

Its holding company, NZ Fintech Group Holdings Limited was placed into liquidation on Monday.

The sole director of Moola is Christchurch businessman Edward Recordon.

In 2021 The Commission brought High Court proceedings against Moola.co.nz Limited (previously named NZ Fintech Limited) (trading as Moola) for breaching the lender responsibility principles contained in the Credit Contracts and Consumer Finance Act 2003 (CCCFA).

The settlement related to loans that Moola provided to 50 borrowers between 6 June 2015 and 30 November 2017.

Moola was offered short-term loans with interest rates of between 182.5% and 547.5% per annum depending on the term of the loan.

In a separate case, the Commerce Commission said Moola.co.nz Limited (Moola) engaged in cartel conduct relating to online advertising.

“The cartel conduct involved Moola reaching agreements with other consumer credit or loan providers to not bid on each other’s brand names on Google Ads and to also ‘negatively match’ certain keywords so that their advertisements would not show when those keywords were used.”

Commission Chair Anna Rawlings said at the time “this conduct meant that consumers searching for a consumer credit provider on Google may not see ads for other loan providers, limiting their access to information about alternative companies and services. This is likely to have reduced the ability of consumers to make informed choices when selecting a loan provider.”

The Commission filed proceedings against Moola in July 2021 seeking declarations that entering into and giving effect to the agreements breached the cartel provisions of the Commerce Act 1986.

Moola co-operated with the Commission’s investigation, accepted that it contravened the Act, and agreed to declarations being made by the Court.