Elderton admitted breaching the Credit Contracts and Consumer Finance Act and the Fair Trading Act.
It has refunded the customers concerned $42,000 and has agreed to stop making consumer loans.
One loan’s balance was adjusted by about $55,000.
The Commission said the fees it was charging for establishing loans and to customers who defaulted were unreasonable.
A fee of $9050 was charged on a loan of $315,900 and a $6900 fee was charged on a loan of $89,000.
It also said Elderton tried to contract out of its obligations under the CCCFA.
Commerce Commission general manager competition Kate Morrison said: “Lenders, even small ones like Elderton, need to be aware of and comply with the law. While Elderton is a small player in the market, the effect of the breaches of the CCCFA is serious.”
