CEO Richard de Lautour argues Instant Finance is no loan shark and defends Stacey Jones' promotion
Last month I interviewed Instant Finance Chief Executive Richard de Lautour about how the South Auckland-based consumer finance company operates.
This followed some comments I made on Campbell Live criticising league star Stacey Jones' involvement promoting Instant Finance and the interest rates and fees it charges its customers.. Here is Instant Finance's response to that story.
I asked de Lautour about the fees and interest rates Instant Finance charges and how it makes money.
Fees charged for late payment, default and to create the loans represent around 70% of the amounts received from interest, he said.
He also denied that Instant Finance was making poor people poorer through its lending.
Instant Finance does not offer debentures to investors, but receives wholesale funding from Fortress Capital. It may return to the debenture market in future, he said.
It is owned by the Nausbaum family of Remuera.