Changes on grounds of hardship

If you are unable reasonably, because of illness, injury, loss of employment, the end of a relationship, or other reasonable cause, to meet your obligations under this Agreement and reasonably expect to be able to discharge your obligations if the terms of this Agreement were changed in a manner set out in section 56 of the Act you may apply to the creditor and agree to that change.


The hardship application

Your application for hardship must be in writing and be given to the creditor and state why you cannot meet your current obligations under this Agreement.

You could seek to change the terms of this Agreement (without a change being made to the annual interest rate as a result) by asking us to (a) extend the term of this Agreement and reducing the amount of each payment due under this Agreement accordingly; (b) postponing, during a specified period, the dates on which payments are due under the contract; (c) extending the term of the contract and postponing, during a specified period, the dates on which payments are due under this Agreement.

You have the right to seek relief in circumstances of unforeseen hardship under this Agreement as long as you have not: (a) been in default for 2 months or more; (b) been in default for 2 weeks or more after receiving a repossession warning notice or a notice under the property law act 2007; or (c) failed to make four or more consecutive periodic payments on their due dates, and these missed payments have not been caught up.

The above only contains a summary of your rights and obligations in connection with your right to seek relief in circumstances of unforeseen hardship. If there is anything about your rights or obligations under the Act that you do not understand, if there is a dispute about your rights, or if you think that the creditor is being unreasonable in any way, you should seek legal advice immediately.


Financial Mentoring Services

Financial Counsellors & Advisors provide independent advice to consumers about their financial circumstances. Should you wish to speak with a financial counsellor or advisor, you can call money Talks helpline on 0800 345 123, text 4029, Email help@moneytalks.co.nz or chat/website www.moneytalks.co.nz

Additionally, should you wish to obtain free consumer and legal advice, you may wish to contact your local Citizens Advice Bureau on 0800 367 222 or via www.cab.org.nz or your local Community Law Centre at www.communitylaw.org.nz