An Auckland lending company has been accused of using deceptive advertising to make people think it is an official government service.
The Ministry of Social Development wrote to LoansNZ this week telling it to "immediately cease and desist" using the Work and Income registered trademark logo in breach of Crown copyright, and the words 'Work and Income loans".
"Your use of the trademark is unauthorised and deliberately deceptive, designed to convey your services as being an official government service," the ministry wrote to the company on December 19.
The company said it had responded straight away.
"There was no intentional deception but nevertheless, we have apologised unreservedly," said LoansNZ director Daniel Wessels, who also runs the parent company Jacaranda Finance and a similar-named finance company in Queensland.
It was, instead, "a bit of unintentional ambiguity" on the website, he said.
"We have ... acted immediately to remove the content that has caused the offense."
The ministry said it was considering further steps and could take further action.
"We know people on low incomes may approach companies such as LoansNZ for urgent assistance, especially at this time of year, however we do not actively refer them ourselves," group general manager of client service delivery Kay Read said.
"We would encourage anyone who is struggling with everyday basics to talk to us first ... we are also able to support ... with no or low-interest loans through the Community Finance Initiative."
The ministry does have preferred suppliers when people approach it for help buying whiteware and glasses, but not for loans.
It also has suppliers registered so they can receive payments directly from the Ministry.
LoansNZ is not a preferred or registered supplier.
