There are laws to protect you when you borrow money. It is important to understand your rights, so you know you are being treated fairly.
There are government agencies and services that can help you, especially when things don’t go as planned:
The lender is there to help you with everything about your loan, including helping you with solutions when there is a problem, or if you have trouble repaying the loan.
Dispute resolution schemes help to resolve problems with a lender. Their services are free and independent, and you can contact them at any time for guidance to help work through the issues.
Financial Mentoring services provide free help and advice around financial issues to help you get back on track financially. Financial mentors can also work with lenders on your behalf.
Money Talks (0800 345 123) is a free and independent helpline that anyone can call to seek advice about managing money and debt. They can put you in touch with a financial mentor in your area.
Sorted helps people sort out their finances so they can get ahead financially and live well in retirement. It has money tools and tips, including debt calculators and budgeting tools that can help you prepare when applying for a loan.
Consumer Protection (part of MBIE) provides practical guidance on consumer laws and knowing your rights.
Community Law Aotearoa provides free legal advice nationwide.
Micro-finance providers such as Good Shepherd and Ngā Tāngata Microfinance, provide loans at either no interest or low interest, but certain criteria apply. Check out the last page for contact details.
The Ministry of Business Innovation and Employment (MBIE) is responsible for developing the law. When laws are reviewed, they seek public feedback, and you can have your say.
The Commerce Commission enforces laws like the Credit Contracts and Consumer Finance Act (CCCFA) and Fair Trading Act (FTA). The CCCFA requires lenders to treat you fairly and make sure you have all the information you need to understand the loan. It also gives you rights if you have difficulty repaying your loan. You can report a lender to the Commission if you think they’ve broken the law. The Commission’s role is to help lenders and borrowers understand their rights and obligations and take action if lenders are not following the law.
