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Cash Converting $100 into $253
Downtown Community Ministry
Bulletin
12 March 2008
Cash Converting $100 into $253
The danger of using small loan and finance companies to access quick money has meant a tough lesson for an unfortunate Downtown Community Ministry client.
The client was approved a $100 cash advance and then agreed to four weekly repayments of $33.75 an amount totally unaffordable for him on his Invalids Benefit and existing expenditure.
He also had an alert on the company’s system to contact DCM should he apply for any money.
Unable to meet any of the instalments he was penalised with four dishonour charges of $25 and two default notice fees of $9 which in just one month made his account with the company total $253.
Upon enquiry, DCM Senior Social Worker Dougal Speir was able to reduce to the account to $160 after the company recognised fault at not notifying DCM in the first instance.
He says, “Too many people, desperate for money, turn to these loan companies without any support or representation. They often have debts to pay after borrowing money for essential living costs or to support an addiction such as gambling and need to find money quick.
“When we know about it, DCM staff are able to negotiate more realistic loan conditions like lower repayments or preventing the loan taking place to the client’s satisfaction”.
ENDS
www.dcm.org.nz
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