From Wiki

Finance companies in New Zealand DO NOT seem to be regulated or monitored as they are in other Countries, as some BE Members have found to their detriment. All I can say is 'buyer beware'. Beware of who you are dealing with and check out their credit ratings.

Over twenty New Zealand finance companies have collapsed in the last two years, leaving investors poorer to the tune of $5 billion. Some big high profile market players have gone to the wall, owing people millions of dollars. Bridgecorp, Hanover Finance and Nathans Finance being some of the biggest disasters. A long string of companies have collapsed or frozen investors' funds. Finance companies have lent the money out and can't give it back, so have frozen their funds. Thousands of people who sunk their life savings, retirement funds and nest eggs into finance firms are still waiting to hear if they will get any of their money back.

While the global credit crunch played a part in fueling the panic, financial experts say that this local situation is mainly home-grown and the collapses started long before the global credit crunch was seen to have any effect in NZ. The finance crisis has rocked some big, well known funds: AXA NZ, AMP and Guardian Trust all suspended funds that invest in mortgages.

Bridgecorp crashed in 2007 failing 18,000 investors.

Hanover recently agreed to a complicated and controversial deal to repay secured investors all their principal in the next five years and continue as a property lending business. Most of those investors won't expect to see much returned until 2012 and 2013.

Consider yourself warned and check out the risk involved!