Wellington, May 28 NZPA - A medical finance company has been ordered to refund about 100 customers, after the Commerce Commission found it was charging different mortgage break fees to what it stated in its contracts.

Medical Mortgages Limited, a company providing finance to medical professionals, admitting breaching the Fair Trading Act by charging customers fees based on changes in wholesale rates, rather than retail rates.

The Commerce Commission ordered the company to pay back about 100 customers a total of around $80,000.

Banks used complicated formulae to calculate break fees and the average customer has no way of checking if calculations were correct, the commission's Auckland fair trading manager Graham Gill, said.

"Customers have the right to expect that break fees quoted or charged are calculated in accordance with what is stated in their contracts," he said.

Medical Mortgages agreed to recalculate its fees and refund affected customers, with interest.

NZPA