Company officers sentenced to community work after lender ignored regulatory warning
The Christchurch District Court has fined 4J Enterprise Limited (4J) $15,000 for providing consumer credit without registering on the Financial Service Providers Register, following a prosecution concluded by the Financial Markets Authority (FMA).
The court also sentenced the company’s director to 140 hours of community work and its senior manager to 150 hours.
The Christchurch-based lender primarily served the city’s Filipino community, offering loans from $500 to $15,000 with repayment terms of six months to two years.
Although 4J stated it charged an annual interest rate of 33 percent, company records showed some borrowers paid rates as high as 55.61 percent.
On 5 June 2026, 4J pleaded guilty to a representative charge under s. 11 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008. The director and senior manager also pleaded guilty as parties to the company’s offending.
The FMA said authorities had informed 4J in May 2024 that it could not provide consumer credit without registration or certification from the Commerce Commission, as required at the time. Despite that warning, the company continued lending for another 18 months.
During that period, 4J issued 46 new loans totalling $81,110 to 27 borrowers. It also collected approximately $65,000 in interest from 50 new and existing loans before stopping interest collection in November 2025.
FMA executive director of response and enforcement Louise Unger said consumer credit providers must comply with applicable registration and licensing requirements.
“These requirements are there to help ensure lenders meet minimum standards and can be held accountable for complying with New Zealand’s consumer credit laws,” Unger said in a statement.
The Commerce Commission initially investigated the company and filed charges.
The FMA assumed responsibility for the prosecution on 1 July 2026, when the Credit Contracts and Consumer Finance Amendment Act 2026 transferred consumer credit regulation to the authority.
Consumer credit providers must register for their services and obtain an FMA licence where required. Under s. 11, companies face a maximum fine of $300,000, while individuals face up to 12 months’ imprisonment, a $100,000 fine, or both.
