Costs of Borrowing
Turners Finance takes its duty under the Responsible Lending Code seriously. Below you will find our Costs of Borrowing information for finance for cars and light vehicles. This is also available in all our branches, free of charge.
Information about interest rates
Turners Finance’s interest rates are fixed for the term of the loan and range from 9.55% to 21.55% p.a. The interest rate which will apply to your loan will depend on a number of factors including:
financial and other information you provide
information provided from credit bureaus and other third parties
your credit history with Turners Finance or MTF if you have been a recent customer
In the event of a default in payment, and while the default continues, you must pay the default interest charges. In the event of a breach of the Contract, or on the enforcement of the Contract, the default fees specified below are payable.
Default interest is 25.00% per annum calculated daily and charged to you on the dates
a) we send you a repossession warning notice,
b) a repossession notice and,
c) when a default is lodged with a credit bureau, if you have not paid the amount due in the meantime
Default interest is only payable on the amount actually in default.
Information about charging interest
Interest charges are calculated and debited monthly, on the same day each month, from the start date of the loan (if there is no corresponding day in the relevant month, then it will be calculated and debited on the last day of that month).
The interest charge is calculated by multiplying the average unpaid daily balance on that day by the applicable monthly fixed interest rate.
Information about credit and default fees
|Establishment fee||Added to the loan balance on establishment (varies based on the loan originator)||$315.00|
|Account maintenance fee||Payable monthly with each instalment||$6.00 per month|
|Early settlement fee||Payable if you repay your loan in full before the final payment is due||$30.00|
|Loss on full prepayment||Payable if you repay your loan in full before the final payment is due and the Creditor has suffered a loss due to a change in market rates since your loan was made|
|Repossession warning fee||Payable 14 days after issue of a repossession warning notice||$100.00|
|Repossession fee||On issue of a repossession notice||$170.00|
|Recovery costs||The actual cost of repossessing the item that was offered as security. This might include repossession agent fees, repair bills, legal fees and storage costs|
This information is current from 15 November 2017 and applies to all consumer contracts with Turners Finance.