Story: Law and the economy

Finance companies and clients

Finance companies and clients

Some investors, including this retired couple, Connie and Caplan Hall, lost large sums of money when a number of finance companies collapsed between 2006 and 2008. In many instances the contracts between the investor and the company proved not to offer protection against such collapse – the relatively high interest rates offered by the companies was accompanied by a greater degree of risk than would have been the case with low-interest investments. However, in some instances investors did go to court on grounds of breach of contract.

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New Zealand Herald
Reference: 280808NZHBPMONEY1
Photograph by Brett Phibbs

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How to cite this page:

Lewis Evans, 'Law and the economy - Contract law', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/en/photograph/25619/finance-companies-and-clients (accessed 2 December 2020)

Story by Lewis Evans, published 11 Mar 2010