increase font size
The Commerce Commission is seeking more information from farmers tied up with interest rate swaps.
The swaps were sold in 2006-07 by some banks to farmers as insurance against interest rates - and hence floating rate farm mortgages - rising rapidly, farmers say.
But when the opposite happened, the farmers who bought them were left locked in to high interest rates which they could not escape without paying hefty break fees. Already heavily indebted, some farmers have lost their farms as a result of embracing interest rate swaps.
The Commission has received complaints primarily from the rural community alleging they were mis-sold the product by certain banks. In particular complainants allege that the nature and characteristics of the swaps were promoted in a way that was misleading.
The Commission has been assessing this information and has requested and received preliminary information from the banks and more detailed information is being sought.
"This is a very complex investigation and we are at an early stage. We have not yet formed a view as to whether the Fair Trading Act has been breached, however we do have sufficient concerns that we wish to probe further," said Commerce Commission chairman, Dr Mark Berry.
Many farmers claim to have suffered significant financial loss as a result of entering into the interest rate swaps.
"We have information from around 60 complainants at this stage, but will need more people to come forward if we are to form a complete picture of the issue," says Berry.
"We are not only interested in people who feel that they have been misled but also those who are satisfied with the way the product was sold to them."
The Commission is inviting affected farmers and others who may have been involved with swaps to read information on the Commission's website and complete a questionnaire at www.comcom.govt.nz/interest-rate-swaps
OPINION: Recent media commentary from Southland Federated Farmers has raised concerns among our rural communities, particularly around Environment Southland’s approach to winter grazing inspections and nitrogen reporting. But let’s be clear, much of what’s been said simply doesn’t reflect reality.
OPINION: Environment Canterbury's (ECan) decision recently to declare a so-called “nitrate emergency” is laughable.
A shameless political stunt is how Federated Farmers is describing the Canterbury Regional Council decision to declare “a nitrate emergency” on the back of its latest annual groundwater quality survey.
Farmers who find the land next to them is about to be converted into forestry, face potential damage and costly consequences.
Federated Farmers say Environment Canterbury's decision to declare a 'nitrate emergency' is a shameless political stunt that won't help anyone.
OPINION: Public pressure has led to Canterbury Police rightly rolling back its proposed restructure that would have seen several rural police stations closed in favour of centralised hubs.
When I interview Rachel Cox, she is driving - on her way to her next meeting.
With Fonterra's UHT plant at its Edendale site less than a year from completion, demand continues to grow for products the plant will produce, such as Anchor Whipping Cream.
A new $50,000 scholarship fund designed to support and empower women in the New Zealand dairy industry through leadership development has been launched.
Many farmers around the country are taking advantage of the high dairy payout to get maximum production out of their cows.
In 2015, the signing of a joint venture between St Peter's School, Cambridge, and Lincoln University saw the start of an exciting new chapter for Owl Farm as the first demonstration dairy farm in the North Island. Ten years on, the joint venture is still going strong.
OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…
OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…
