Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

The Low Down on Loans

Downtown Community Ministry


The Low Down on Loans

The importance of Downtown Community Ministry’s Street People Project has again showed its crucial role assisting those out of financial difficulty.

Two clients recently made contact with Newtown based loan companies, a practice strongly discouraged by SPP co ordinator Jen Long, and what their experience gave us reason to investigate further.

The loans sought by our clients were small and were likely needed to service other personal debts, but our research revealed the costs associated with these loans can almost double the amount initially required.

For example: a loan of $500 repaid over one year at both companies in question increased to nearly $800 once establishment fees, insurance, administration costs and interest of up to 28% was included. Of concern was the fact that while our clients were informed of the interest rate for the loan, it was only after DCM made phone enquiries that the other fees were made known.

The influence of loan companies is cited in the recently released Living Standards report by the Ministry of Social Development. It notes that low income earners are more likely to carry a high level of personal debt and much of this is through small finance companies.

Sadly DCM is not surprised that many of these businesses are grouped next to Work and Income New Zealand offices, pokie bars and Cash Converters in Porirua, Lower Hutt and Newtown.

As a benefit advisory and budgeting service, SPP has over 60 clients that have their benefit redirected through the programme to help manage expenses such as rent and power. Debt repayment is given a high priority in order to place the client back on an independent footing as soon as possible.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Scoop 3.0: How You Can Help Scoop’s Evolution

Entering into its third decade of operation, the Scoop news ecosystem is set to undergo another phase of transformation and evolution.

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

 
 

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>

ALSO:

Train Free Thursday: Workers Strike To Defend Terms Of Employment

"They signed up to these conditions a year ago when they got the contract for Wellington's rail services. Now they're trying to increase profits by squeezing frontline workers." More>>

ALSO:

Seclusion: Ombudsman Emphasises Importance Of Monitoring

Disability Rights Commissioner Paula Tesoriero says that while there have been changes to the Education (Update) Amendment Act 2017 to prohibit the use of seclusion, the report is an important reminder of the importance of regular monitoring of schools. More>>

ALSO:

United Future History: "All Good Things Must End"

'We’re extremely proud of what we’ve achieved over the past 15 years, working alongside the government of the day, both National and Labour.' Mr Light told members on Monday. More>>

Gordon Campbell: On The TPP Outcome, And The Hobbit Law

Somehow the Trans Pacific Partnership trade deal has come lurching back from the dead – and as predicted in this column last week, the member countries gathered in Vietnam have announced a deal in broad principle, shunted aside until a later date the stuff on which they don’t agree, and declared victory. More>>

Agreeing To Differ: Greens Maintain Opposition To TPPA
“The Green Party has long opposed the TPPA. The new proposed deal, which came out of the weekend’s talks, still contains key ISDS concessions to corporations that put our democracy at risk, so our position remains the same,” said Green Party trade spokesperson Golriz Ghahraman. More>>

ALSO:

Monitoring Report: A New Chapter For Children’s Rights In New Zealand?

The Children’s Commissioner is calling on the country to embrace children’s rights to ensure their overall well-being. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election