Financial disputes awareness campaign starts today

A campaign aimed at empowering vulnerable communities in New Zealand by helping them to know their rights when borrowing money kicks off from today, says Consumer Affairs Minister Simon Bridges.

The new campaign, which builds on the success of the Loan Stress campaign run earlier this year, partners Consumer Affairs with the Federation of Family Budgeting Services, to help guide consumers through the disputes resolution service and offer budgeting advice.

"All financial providers have to belong to an independent dispute resolution scheme, which is free for their customers to use.  But some people may be unsure of their rights or find the complaints process intimidating or overwhelming. It may seem like too much when you are already facing financial or other family hardships.

"I urge anyone who feels they are being unfairly treated or are at loggerheads with a financial provider to call the free phone line – 0800 56 26 787.”

Since February, more than 1000 people have already been helped by the phone service. This newly focussed campaign, which runs from today until the end of November, has a Pacific Islands community emphasis. It uses churches, community networks and budgeting advice services to point people to the free phone line and to share stories of how real people have resolved financial struggles by exercising their rights.

"The Government is also committed to amending the consumer credit laws to target loan sharks and better protect consumers,” says Mr Bridges.

The Credit Contracts and Consumer Finance Amendment Bill, due to be introduced to Parliament in the coming months, includes guidelines on responsible lending, clearer consumer protections regarding hardship, unreasonable fees and oppressive contracts, and restrictions on financial providers who do not belong to an approved dispute resolution scheme.

For more information on the campaign go to: http://www.consumeraffairs.govt.nz/for-consumers/credit-and-debt-1/got-a-problem-with-a-credit-contract-1/phonefree0800562678