We strive to be a responsible lender and as such, we have certain responsibilities to you if you choose to take a loan with us.
These responsibilities are set out in the Responsible Lending Code, providing guidelines to lenders as to how borrowers and potential borrowers should be treated.
Here is a brief overview so you know what to expect. Further information is available on the Commerce Commission website, and the video links below.
Understanding Your Needs
We will need to ask a few questions to ensure we can understand you and your situation, so we can assist you to make a good decision about your loan. Any information you give us will be kept confidential.
To ensure you are able to afford the repayments without experiencing hardship we will need to ask questions about your past and present financial situation, including your employment status.
Depending on your circumstances we may ask about your:
- Weekly/Monthly Income and/or benefits
- Fixed expenses (such as rent, phone, power any other utility bills, child support, other loans/hire purchases and any monthly or yearly expenses such as insurance)
- Other expenses that come up from time to time (and any special or unusual circumstances that might change your ability to repay a loan)
- Credit history and past defaults (if any)
- Personal circumstances, including your age (especially if you are under 18) and the number of people who are financially dependent on you, your address and how long you have been living there for
We will also need to request some documentation to support the information you have provided to us, which will generally be in the form of bank statements.
In addition, we will also need to ask about the amount you would like to borrow, how long you would like the term of your loan to be, and what you require the money for. This will help us decide whether our particular loan type is suitable for you, and will meet your needs.
We may not be able to give you a loan if the information you have given us indicates:
- You would not be able to repay the loan
- You would find it extremely hard to repay the loan causing you financial stress
- The type of loan offered will not suit your needs or goals.
Making sure you understand
We will do our best to help you understand the implications of the loan before you sign.
Our standard terms and conditions are available on our website and in our stores. We encourage you to either read this yourself or take them to someone who can help you understand the nature of the loan, and your rights and responsibilities under it. You should do this before you sign any loan documentation.
We will clearly explain to you the interest rates and fees, and what your repayments due under the loan would be.
We will do our best to ensure you understand the risks that come with having a loan and what can happen if you do not repay it, which might include repossession and sale of any property you provide as security. Any security taken will be clearly described in the loan documents.
How we will help if things go wrong
We know that your situation may change from time to time. If you are having trouble meeting your repayments under the loan you should contact us as soon as possible. We always find it better to speak to people early as this allows us more options to assist you to get the best solution based on your circumstances. Further information regarding undue hardship is provided in the loan documents.
We will treat you fairly if you miss payments. This may include renegotiating the terms of your loan if it is possible to do so.
If you wish we will discuss the loan with your budget advisor or assist you to deal with any social service provider if you ask us to.
We will explore every other option available before we consider repossessing any security under the loan, and should that be required, we will treat you fairly and keep you informed through the process.
We will treat you and your property with dignity and make sure any repossession agents acting on our behalf also treat your fairly
If you have a complaint about your loan
If for any reason you are unhappy with any aspect of our service or product we invite you to let us know, and allow us the opportunity to address those issues. You can speak to our staff or refer the matter through our internal complaints procedure.
Alternatively, if you feel it necessary you can make a complaint to our independent dispute resolution scheme.
Financial Services Complaints Limited (“FSCL”) Contact details for FSCL are:
FSCL, P O Box 5967, Wellington 6145
Phone (04) 472 3725 or 0800 347 257
Responsible Lending Videos
The following videos are from the commerce commission and explain responsible lending.
Episode 1: Herman Faleafa wants a loan
Herman dreams of watching the rugby on his own big screen TV. He visits his local lender Marcus Money after deciding to take out a loan to purchase a 4K TV and finds getting a loan is not like it was in the past.
Episode 2: It costs how much?
Herman is still committed to realising his dreams of high definition glory but when he returns to see Marcus about getting a loan he finds out what the loan will really cost once fees and interest are added.
Episode 3: Tell him he’s dreaming
Herman needs someone to guarantee his loan so he can realise what Aunty refers to as “his ridiculously large television set aspirations”. But when Marcus outlines exactly what being a guarantor means, will Aunty agree to guarantee Herman’s loan?
Episode 4: Herman’s totally unexpected hot pie incident
In a totally unexpected hot pie incident Herman crashes his car into an ice cream van and loses his ability to earn money as a freelance taxi driver. Wondering if he will still have to make his loan repayments he turns to Aunty and Marcus for help and learns all about hardship applications.
Episode 5: The one when the repo guy comes
With his car still out of action, Herman has fallen behind on his car loan repayments. He comes face to face with the consequences when the repossession man turns up at his front door.
Episode 6: Cough it up Herman!
It’s Junior’s birthday and Herman is out shopping for party supplies. While looking for toys for the goodie bags, he discovers why toys for children under 3 must meet safety standards.
Episode 7: Indebted to Aunty (again)
Herman gets an unexpected bill for interest and fees after his furniture was repossessed. He turns to Aunty for help and finds things are not what they should be.
Episode 8: Herman meets his match
Herman is getting back on his feet and looking for a reliable family car. After some advice from Aunty on the Consumer Guarantees Act, he gets more than he bargains for when he takes a car for a test drive.
Episode 9: Let’s agree to disagree
Herman stands up for his consumer rights after he struggles to get a replacement when his ‘awesome as’ TV blows up.
Episode 10: Herman’s extended decision
Herman heads to the store to buy the kids a game system and has to decide whether to purchase an extended warranty.