Financial services and community join forces
The Financial Services Federation (FSF) - the voice of responsible lenders and leasing companies - and FinCap - working with consumers facing financial hardship - are signing a Memorandum of Understanding (MoU) this Thursday 22 August in Auckland. It will improve the ability of Financial Mentors to represent their clients effectively, and it will support work in financial services to improve response to hardship.
FSF has a long-standing commitment to responsible lending, having developed Responsible Lending Guidelines which were incorporated as Lender Responsibility Principles in the Credit Contracts and Consumer Finance Act and applying to all lenders that came into force in 2015. They have a number of voluntary codes to further encourage responsible practices. The clients of the 200 local budgeting services working with FinCap typically have debts with finance companies, impacting on their financial wellbeing. Part of the role of local Financial Mentors is to advocate for their clients with lenders.
Both FSF and FinCap believe that the best outcomes for our mutual clients comes from working together.
FinCap, Chief Executive Tim Barnett said:
"Financial mentors spend a lot of their time advocating for clients with lenders and creditors. This can be a difficult process with many barriers. This agreement will help to reduce those barriers and make it easier to get positive resolutions for our clients and their creditors. It will lead to a win-win solution for borrowers and lenders."
FSF Executive Director Lyn McMorran said:,
"FSF represents the responsible lenders in the market. Part of our commitment to responsible lending is to work constructively with financial mentors in the community to help prevent financial hardship. We look forward to formalising our already positive relationship with FinCap and the services they work with."
This MoU is particularly significant in the context of Credit Contracts Legislation Amendment Bill that is currently going through Parliament. This Bill will strengthen regulations related to credit contracts.
The MoU is being signed on Thursday 22 August 2019 at an event in Auckland CBD.