UNFORESEEN HARDSHIP & FINANCIAL DIFFICULTY
Life can sometimes take unexpected turns, and these events may affect your ability to keep up with loan repayments. At TerePay, we encourage you to reach out to us early if you are experiencing, or expect to experience, unforeseen hardship or other financial difficulty.
Examples of situations that may lead to financial difficulty
Examples of situations that may lead to unforeseen hardship or other types of financial difficulty include:
Injury or illness
Loss of employment or reduced income
Relationship changes (divorce or separation)
Pregnancy or new family responsibilities
Natural disasters affecting your home or income
Ongoing medical treatment or health challenges
Other unforeseen events that impact your finances
If any of these apply to you, please contact us as soon as possible. We can consider options to support you through this period.
“Unforeseen hardship” is a type of financial difficulty. We explain what “unforeseen hardship” means below and your rights in that situation. After that we explain some other types of financial difficulty and what may be able to do if you experience such financial difficulty.
WHAT TO DO IF YOU SUFFER UNFORESEEN HARDSHIP
If you are unable reasonably to keep up your payments or other obligations because of illness, injury, loss of employment, the end of a relationship, or other reasonable cause, you may be able to apply to us for a hardship variation. In some circumstances listed here [https://www.legislation.govt.nz/act/public/2003/0052/latest/DLM213121.html] you are not entitled to make an application (but we might be able to consider that- see “Other Types of Financial Difficulty” below).
To apply for a hardship variation, you need to:
make an application to us in writing;
explain your reason(s) for the application; and
request one of the following:
an extension of the term of the contract (which will reduce the amount of each payment due under the contract); or
a postponement of the dates on which payments are due under the contract (specify the period for which you want this to apply); or
both of the above; and
give the application to us.
Do this as soon as possible. If you leave it for too long, we may not have to consider your application.
You may give that notice in the following ways:
deliver it to our address specified in our Disclosure Statement; or
post it to our address specified in our Disclosure Statement; or
email it to our email address specified in our Disclosure Statement.
What happens next?
We may ask for further information and supporting documents such as ACC letters or medical certificates.
Once we review your request we will let you know whether we agree to make a hardship variation. If we agree to make a variation we’ll send you a document to review and sign before any changes are made.
Until changes are confirmed, please continue making payments where you can.
OTHER TYPES OF FINANCIAL DIFFICULTY
If you are experiencing financial difficulty other than “unforeseen hardship” (above) or if you are not eligible to make a hardship application, we may be able to assist you in ways that are fair and reasonable to both us and you. Examples of situations that may lead to financial difficulty are above. In those situations you may miss, or be at risking of missing, making payments to us on the date for payment.
You can contact us at any time about a financial difficulty or possible financial difficulty. We may request information about that from you such as bank statements, payslips, or other proof of income.. Once we have enough information we will consider your situation and whether to help you. Thay may include extending the loan term (length), extending payment dates, waiving fees, assisting you to get help from professionals such as budget advisers.
GETTING ADVICE
If you’re facing financial difficulties, free support may be available through MoneyTalks.
Call 0800 345 123
Visit moneytalks.co.nz
There are other services that also provide support.