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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Reference: 280808NZHBPMONEY1
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How to cite this page:

Lewis Evans, 'Law and the economy - Contract law', Te Ara - the Encyclopedia of New Zealand, (accessed 2 March 2024)

Story by Lewis Evans, published 11 Mar 2010