Changes to consumer lending, and how it affects you
(From 1 December 2021)
Laws around lending money to consumers in New Zealand have changed, which means it may take you longer when you borrow and you may be declined. It’s important to know how these changes affect you and what to expect as a borrower.
Please click on this link for more information from the Financial Services Federation website.
Right to Cancel
You are entitled to cancel the consumer credit contract by giving notice to the creditor.
Time limits for cancellation
You must give notice that you intend to cancel a contract within 7 working days of the date on the disclosure document.
Saturdays, Sundays, and national public holidays are not counted as working days.
How to cancel
To cancel you must give the creditor written notice that you intend to cancel a contract by – giving notice to the creditor or an employee or agent of the creditor; or
- posting the notice to the creditor or an agent of the creditor; or
- emailing the notice to the creditor’s email address (email@example.com)
You must also, within the same time, return to the creditor any advance and any other property received by you under the contract.
What you may have to pay if you cancel
If you cancel the contract the creditor can charge you
a) the amount of any reasonable expenses the creditor had to pay in connection with the contract and its cancellation (including legal fees and fees for credit reports, etc.).
b) interest of the period from the day you received the advance until the day you repay the advance.
We can all have times when unexpected things happen that put us in a tough financial position. Be assured that at Grabaloan we always do what we can to help our customers, so don’t hesitate in reaching out if you are ever worried about meeting your repayments. All it may take is a quick email or phone call.
You can make a hardship application where, due to an unforeseen hardship, you are facing difficulties meeting your loan obligations. If approved, the company may agree to a change to the terms of your loan. To make an application for Unforeseen Hardship, which may include, suspension of payments, reduction of payment amount, change in payment cycle, suspension of default fees or other payment arrangements during the period of Unforeseen Hardship. Please refer to the list below:
- The application for Unforeseen Hardship must be made in writing by the borrower.
- The borrower must not be more than 2 months in arrears in their payments, or have missed more than 4 consecutive payments.
- Further applications for Unforeseen Hardship cannot be made within 4 months of a previous application for Unforeseen Hardship in respect of the same event.
- The lender must acknowledge in writing the Unforeseen Hardship application within 5 working days, or request further information within 10 working days, and provide a written decision within 20 working days.
- The borrower may appeal a declined decision for Unforeseen Hardship though the lenders dispute resolution provider FSCL, by emailing firstname.lastname@example.org or calling FSCL on 0800 347 257. Full details of how to access the FSCL scheme can be obtained on their web site www.fscl.org.nz. There is no cost to you to use the services of FSCL
It is the company’s policy to provide whatever assistance is reasonable to assist you through an Unforeseen Hardship so your loan remains manageable though a difficult period. We may also recommend you contact a free community advisor if you need assistance with your application for Unforeseen Hardship.
In the event of a successful Unforeseen Hardship application the lender may charge an administration fee to cover the time and any other costs in processing the Unforeseen Hardship application, no fee may be charged for an unsuccessful application.
Contacting the company as soon as you become aware that you may have trouble meeting your loan payments will mean an arrangement can be made quickly and avoid any default interest or fees. If you miss a payment the company will contact you, and this is a good time to discuss an Unforeseen Hardship application if this is necessary.
Financial Mentoring Services
If you have concerns about your finances, the Ministry of Social Development, through their website www.moneytalks.co.nz provide support to anyone experiencing financial hardship in their personal life. You do not need to be receiving support from Work and Income and the budgeting services are free and confidential:
If you are not satisfied with the service you have received from us you should contact us. We have an internal compliance process and undertake to investigate your concerns promptly and fairly. You may contact us to make a complaint by telephone, by email or in writing.
It is the company’s policy to address any complaints as quickly as possible and acknowledge the complaint within 1-2 working days. The first step to making a complaint is to contact the company and discuss whether you have a complaint, or if you simply would like some further information or assistance either with regards to your account or any other service.
On making a complaint our first consideration is to discus with you the problem, and what sort of outcome you would like so we can find a quick and easy resolution. In the event the complaint is more complex or requires further investigation the company will undertake this without delay, and communicate and keep you informed of any progress or outcome.
In the event we are unable to fully resolve your dispute satisfactorily we will recommend you contact our disputes resolution provider FSCL who will then require the company to provide an explanation of the complaint, and steps the company has done to resolve the complaint to date.
The disputes resolution provider after investigation will take any action it deems necessary on your behalf where it believes your complaint is justified and has not been resolved satisfactorily and may make an order which is binding on the company.
We are a member of an independent dispute resolution scheme operated by Financial Services Complaints Limited (“FSCL”) and approved by the Ministry of Consumer Affairs. We have 20 days to respond to your complaint. If you are not satisfied by our response, you may refer the matter to FSCL by emailing email@example.com or calling FSCL on 0800 347 257. Full details of how to access the FSCL scheme can be obtained on their web site www.fscl.org.nz. There is no cost to you to use the services of FSCL.
Terms and Conditions
- To see our Standard Loan Agreement and Terms & Conditions, please click here
Waiver Agreement (Payment Protection)
- To see our Waiver Agreement, please click here