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Key Facts

In discussions with many organisations and individuals when it comes to debt there are some realities that debtors(borrowers) have to face.
The way debtors think and the way creditors think can be so far from the same it can sometimes be scary.

  • Statement:Your bank or finance company cares about you!
  • FALSE: In most companies you are to them a number on a balance sheet, and if you are on the wrong side of the balance sheet you are a hinderance and your finance company cares less about your situation than you will ever know.

  • Statement:I have been with my bank for 30 years, my bank will help me!
  • FALSE: Realistically, you are worth no more today than you were yesterday, business is business, and a lot of finance companies / banks are happy to send your debt to a collector, write you off as a customer, and move on to the next person.

  • Statement:Surely the bank or finance company will accept a smaller offer than have me become bankrupt, and risk not getting anything!
  • FALSE: You would think that this would be the case, however, a number of large finance companies will not accept a reasonable anount due to it being outside their 'minims' and if you bankrupt they dont actually care, they can close off the account and not have to deal with it ever again.

  • Statement:My bank (or finance company) will help me out!
  • FALSE: Although there are various options for people that are in debt such as hardship facilities, interest only periods, frozen debt, etc, that doesn't mean that the bank or finance company will let you know the options that you may have.

  • Statement: My bank doesn't want to lose me as a customer!
  • FALSE: There are plenty more fish in the sea, or so it would seem, your bank doesn't care about you, because they believe that they have an endless supply of customers to treat the same way.
    In reality we know that if you ruin the credit of all of your customers, sooner or later you wont have any, and New Zealand is too small a country to act in that manner.

If you believe the things that your bank is advertising you are more of a chump than you think. Your bank doesn't live in your world, they live in their own world, where they want you to put money into their bank accounts, and dont want you to take it out.
This is reflected ion the growing number type and amount charged in punitive costs, punitive interest, etc.

Your bank doesn't want you to be good with your money, they want you to overspend, gamble, get into difficulty etc
And they certainly dont want you to pay off that credit card, because thay cant charge you that compounding interest rate that will keep you in debt.

Finally your bank will not be smiling and kind to you when they are calling you 10+ times a day using their autodialling machine to nag you to pay the debt you owe them, and the added default costs, the collection costs etc.

As the award for truthful (sic*) advertising in New Zealand goes to "the banks that made billions in profit last year!"

NZ Debt promotes ethical debt arrangements, and fair and responsible collection practices.
NZ Debt supports the instigation of a Fair Debt Collection Practices act similar to that which has been enacted in the USA (see [FDCPA] which has been in place since 1977.

It is a sad reflection of the priorities of the New Zealand government (the protectors of NZ Citizens) showing that NZ is 36+ years behind with this consumer protection legislation.