Three major banks in New Zealand are going to court for allegedly misleading rural customers.
The commerce commission says ASB, ANZ and Westpac breached the Fair Trading Act by not being clear about interest rate contracts sold to rural customers.
That meant farmers ended up paying 10% to 15% interest when the rate for a normal loan was just above 5%.
Some farmers have complained that when interest rates fell, they were locked into the higher rates which they could not get out of without paying an expensive buy-out option.
At this stage it looks like they will go to court in March 2014.
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