National uilding Financial apability haritable Trust Sector ... families with more than 1000...
Transcript of National uilding Financial apability haritable Trust Sector ... families with more than 1000...
National Building Financial Capability Charitable Trust Sector Newsletter
No. 11 3 November 2017
Contents 1. Meet the Trust Board 2. Diners Club ‘takes the court to court’ 3. Call for Expressions of Interest - Board Member, Pacific Perspective 4. NEEDING YOUR RESPONSE! 5. Financial dispute resolution 6. New resource to support the crackdown on unscrupulous mobile traders 7. Strength-based training 8. Community newsletters and media releases
Kia ora, greetings, and welcome to our latest newsletter.
Back when I started in June I drafted a list of targets for us to achieve by the end of 2017. It was
endorsed by our Board, and they consider a report on progress at each of their meetings. It isn’t a
startling list, but getting it right has been crucial for us to enter 2018 with a mindset and ability to
succeed. I’m pleased to report that we are on track. It really all comes down to three tasks.
Key has been reorientation of systems and mindsets to work with all budgeting/BFC services – whether
or not funded by MSD, big and small, Christian and secular, all the variety in our large and colourful
garden of 200 agencies delivering from more than 250 locations.
Keeping basic services going while starting the discussions on future direction, meeting with literally
dozens of stakeholder organisations, recruiting staff and moving premises has been critical.
And negotiating sustainable and long-term funding and a cooperative relationship with MSD is the
third area. By early December our staff team – 6.5 or 7.5 full time equivalent staff, a little over half the
staff complement of the Federation, and serving the needs of 80% more local services – will be in place
(more news on the details of those appointments in the next newsletter), and the planning discussions
which were at the core of the recent regional hui will have moulded into an operational plan to take
us through next year, while longer term planning proceeds. That will include an advocacy plan.
Of course, life goes on while renovation takes place. We have generated some media coverage, and
have led on the bank privacy waiver redrafting project. Some accords have progressed, and – including
this newsletter – we have been seeking input on matters which sound worrying, and which, armed
with evidence of experience from around our network, we can take to those with the power to do
something about them.
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As ever, input, questions, comments are welcome. Transparency is one of our values, please hold me
and all of us to that.
Tim Barnett
Chief Executive
Meet the Trust Board
Having just completed our fourth month, we thought it was
time for you to meet the important people behind some of the
great stuff to come from our Trust so far. You may have even
met one or two of them at the recent Regional Hui, where each
Board member got their chance to get involved.
Linda Ngata – Chairperson Executive Management - Te Runanga o Nga Maata Waka
Her governance roles extend over a number of sectors including community
development, Māori development, social services, health, education, housing, and
recently the building financial capability sector. Other governance roles include:
Chair of the National Community Organisation Grants Organisations, Board
Member of the Māori Community Leaders Forum Ōtautahi, Deputy Chair of Nga
Hau E Wha National Marae Charitable Trust and Deputy Chair of the Earthquake
Support Coordination Service, Christchurch.
40 years’ experience in leadership and project management roles.
Notable record for establishing inter-sectorial relationships with government agencies, non-
government organisations, community, Iwi and Maori. An active community advocate for the socially
and economically disadvantaged with a commitment to enterprise development, advocacy on behalf
of Māori issues and Whanau Ora.
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Nicola Sladden LLB (Victoria University) MPH (Boston University) Banking Ombudsman
Nicola is the Banking Ombudsman and Chief Executive at the Banking Ombudsman Scheme and has held this role since1 August 2015. She has over 20 years’ experience in dispute resolution, including four as Deputy Banking Ombudsman. She has a law degree from Victoria University and a Masters of Public Health from Boston University. Nicola was previously the Chief Legal Advisor at the Office of the Health and Disability Commissioner and has worked in private practice. She has published and presented on dispute resolution in New Zealand and
abroad. Nicola is a member of the Trust Board for the Malaghan Institute, an independent biomedical research institute and a former trustee for the Mary Potter Hospice.
Darryl Evans JP CEO of the Associated Budgeting Consultants
Darryl was raised and educated in Wales. He has lived in New Zealand for the
past 28 years. Darryl has been the CEO of Mangere Budgeting Services Trust
for the past 15 years, guiding the organisation through significant change and
growth.
Darryl has built a strong reputation fighting for people’s rights in New
Zealand and is often the first port of call by mainstream media and he writes
regularly on poverty related issues.
Darryl and his Cook Island / Samoan / Māori partner of 25 years have two children, both of Māori
descent, and lives in the Waikato.
He has recently completed study on a 'First Line Management and Leadership Programme' from a
Maori context and a 'National Certificate in Maori / Mauri Ora' at Te Wananga o Aotearoa. Darryl holds
a 'Certificate in Child Protection Studies' and is enrolled on an MBA in Business Administration.
In 2012 he was awarded a ‘Community Award’ for outstanding contribution to the Mangere-Otahuhu
Community by the Mangere-Otahuhu Local Board, Auckland Council.
In 2013 Darryl was awarded 'Community Worker of the Year' in Franklin's Finest People of the Year
Awards and in 2016 he received a Certificate of Achievement in the category of 'Kiwibank New Zealand
Local Hero of the Year' in The 2016 Kiwibank New Zealander of the Year Awards.
He sits on the Care and Protection Resource Panel (Mangere) with MVCOT formerly known as Child,
Youth and Family. Darryl was a former Director and Trustee of the Aotearoa Credit Union.
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John Exton - Treasurer
General Manager Kingdom Resources, Christchurch and Treasurer of the Trust
John brings more than 30 years business experience starting work as an
Accountant in both Chartered Accountancy and in industry. His passion for
social justice led him to train as a volunteer budget advisor in 1987 with the
Christchurch Budget Service.
John has now exceeded 20 years as the General Manager of Kingdom
Resources, which as well as providing budget advice over those years has
helped families with more than 1000 interest free loans granted.
He has been part of establishing and developing budgeting networks – CBNZ (Christian Budgeting NZ)
at the national level and previously BACN (Budget Advice Canterbury Network) at the local level.
Passion for the budget advice sector has led to him advocating for national change both with MSD and
on proposed legislation. He has also been part of the Steering Group that has journeyed to the
establishment of the National Building Financial Capability Charitable Trust.
Outside of work, John enjoys family time including mountain biking, walking and fishing
Carmel Thompson Manager of the Central Hawke’s Bay Budgeting Service
Carmel began as a volunteer Budget Adviser 27 years ago, becoming the
Coordinator of Central Hawke’s Bay Budget Service two years later, a position that
she still holds.
She has held various positions in local groups including Plunket, Play Centre,
Kindergarten, PTA, Scouts, Board of Trustee member for the Local School, Board
Member Support and Counselling Service, Growing through Grief and New Zealand
Federation of Family Budgeting Services, of which of she has held the position of
President for the last two years. She am an Interim Trustee of the Nga Tangata Micro Finance Trust.
Working with these various organisations has given Carmel a broad overview of governance.
Carmel has developed networks within her local community, regionally and nationally. Very hands-on,
Carmel is aware of the complex situations that people face on a day to day basis. She is not afraid to
advocate for those who are disadvantaged, both socially and economically.
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Tele’a Andrews
Tele'a is a Senior Policy Advisor in the Competition and Consumer Policy team at
the Ministry of Business Innovation and Employment. Previous to that he was a
senior executive at Vaka Tautua, a charitable organisation providing community
mental health, older people and disability services for Pacific people. He holds a
Masters of Public Policy with first class honours from the Auckland University
where he also held assistant teaching positions at the Centre for Pacific studies.
Tele’a currently serves as a Board member on the Trust providing a Pacific
perspective.
Diners Club ‘takes the court to court’ because it won’t rubber stamp their claims for a judgment debt
The voices of community lawyers and budget advisors made a difference for the outcomes of many vulnerable borrowers being taken to court by their lenders When lenders seek a judgment for overdue debt through the courts, they expect it to be ‘rubber
stamped’ by the court. This is a process known as ‘judgment by default’ when the borrower does not
turn up to defend themselves in court.
Applications for judgments and subsequent attachment orders (where money is docked from wages)
skyrocketed after changes were made to the civil debt enforcement system in 2014. The courts
noticed some applications appeared to be oppressive and judges began re-opening contracts on
grounds of oppression to review the interest and fees that were being charged. Judges then
summoned lenders to a ‘formal proof hearing’ to prove their claims. By re-opening the contract judges
can reduce the claim, change the terms or cancel it completely. Diners Club was one such lender
which was asked to prove its claim, and it objected on the grounds that the court does not have the
power to re-open a credit contract on its own motion. Diners believed the court should effectively
‘rubber stamp’ their claim according to the District Court Rules when the borrower fails to defend
themselves. Diners also believed the court could only reopen a contract at the borrower’s request.
The courts noticed that Diners Club waited for over 1 year before it submitted its claim to the court.
It also noted that ‘most, if not all lenders seem to do this’. Borrowers have 1 year to ask a court to re-
open a contract on grounds of oppression, meanwhile interest and charges are accruing. So if lenders
wait a year to seek judgment by default, their claim cannot be contested by borrowers. The 1 year
limitation does not apply to the court. Diners made a number of objections to the way that the courts
were challenging applications for a judgment by default, and Diners effectively ‘took the court to
court’ under a judicial review.
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Diners Club argued that ‘borrowers could adequately protect their own interests without the court’s
intervention’. The High Court disagreed with this. It also gave the Commerce Commission permission
to step in and speak up on behalf of borrowers. Diners said the Court had no evidence that borrowers
were unable to protect themselves or that their claims where oppressive, so the Commission provided
some. This is what the Judge had to say about the evidence we provided:
[51] The Commission provided some factual examples of how a borrower’s vulnerability affects their
ability to challenge proceedings filed against them. It noted that most complaints that it receives about
consumer credit contracts arise out of the intervention of community law centres or budget advisors,
and rarely on the initiative of the borrower themselves. The Commission submitted that this speaks
volumes about the efficacy [ability] of borrowers themselves holding lenders to account.
[52] The Commission’s evidence, which I accept, clearly demonstrates that borrowers cannot
reasonably be expected to routinely protect their own interests under the CCCFA. For a wide range of
reasons, borrowers are often not in a position to adequately protect their own interests.
The Court established it had the power to re-open contracts on its own without the borrower first
asking it to and that it will continue to re-open contracts and hold lenders to account.
The bottom line is this: your voices matter when you speak up for your clients. In this particular (and
rather important) instance the fact that you do became evidence that borrowers need the
intervention of the courts against oppressive contracts. So the message is clear, let us know what is
happening to them.
Lezanne Gibbs
Commerce Commission
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Call for Expressions of Interest- Board Member, Pacific Perspective
We will shortly have a vacancy for the position that provides a Pacific perspective on the Trust Board,
and are currently looking for expressions of interest for the position. The Trust is committed to a Board that includes a range of different perspectives. Pacific people
comprise a disproportionate number of those living in complex and challenging financial
circumstances so a Pacific perspective at the Board table is crucial to the success of the Trust. This
position supports the governance of the NBFCCT to include Pacific perspectives in forward planning
and thinking about how the sector wants to grow and serve a diverse group of providers and people. To put forward an expression of interest, send your CV and a short cover letter to
[email protected]. For details of the Job description: https://goo.gl/X1vgUE
Tele’a Andrews Board Member
NEEDING YOUR RESPONSE!
We have been contacted by the Insurance Council of New Zealand, keen to establish closer
relationships with budgeting services and to identify and try and tackle some of the insurance related
issues which financial mentors might be coming across. I have already raised the issue of expensive
and largely irrelevant insurance packages attached to credit arrangements – examples of this issue
and others would be very welcome! - – to [email protected]
I also recently met with a General Manager from Dun and Bradstreet (rebranding as Illion); Credit
Simple is one of their services. They are keen to receive feedback from us on issues which budgeting
services have come across, both in relation to their credit reporting service (Credit Simple) and their
debt collection operation. Feedback would be very welcome – to [email protected].
Many thanks to those of you who responded with examples of banks pressuring people who have a
debt to them to try and obtain a hardship withdrawal from Kiwisaver schemes, including those with
a relationship with the same bank. The Financial Markets Authority and the Banking Ombudsman are
looking at the issue, and more examples would be very helpful – to [email protected].
Tim Barnett
Chief Executive
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Financial dispute resolution
Or, more specifically, a guide on how to complain about a finance company you think may be in breach
of the Credit Contracts and Consumer Finance Act (CCCFA).
Knowing how and when to complain to a financial disputes resolution scheme adds great value to the
service you can provide to your clients. A disputes scheme is able to help a complainant resolve an
issue they have might have with a creditor and, where there is a breach, the scheme is able to award
compensation to the complainant.
If the issue is a widespread one, you should also raise it with the Commerce Commission.
Who are the financial dispute resolution schemes?
There are four financial disputes resolution schemes and all financial service providers are legally
required to be registered to one of them. The schemes are:
Financial Service Complaints Ltd (FSCL) 0800 347 257
Insurance and Financial Services Ombudsman (IFSO) 0800 888 201
Financial Dispute Resolution Scheme (FDRS) 0508 337 337
Banking Ombudsman 0800 805 950
The schemes are paid for by the financial service providers and free to consumers.
The first thing you need to know when making a complaint is which of these schemes you should
complain to. All you need to do is search for the finance company on the Financial Service Providers
Register, or call any of the schemes.
Once you’ve located the company on the register, you’ll be able to see which disputes resolution
scheme the company is registered to. If they aren’t on the register, get in touch with any one of the
disputes resolution schemes.
Make a complaint
Believe it or not, being grumpy at a finance company doesn’t quite warrant making a complaint. Here
is a list of legitimate reasons you might complain:
• a breach of contract;
• irresponsible lending practices, particularly about questionable affordability assessments;
• not following industry standards, or any relevant code of practice or laws, including irresponsible lending;
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• misleading information or inappropriate advice such as suitability of the product for your needs;
• not disclosing fees and/or terms of the contract;
• debt recovery and repossession action in relation to a consumer credit contract ;
• decline of an insurance claim or cancelling of a policy (usually due to non-disclosure);
• disagreement over policy and contract interpretation;
• transaction disputes.
When listening to your client’s story, keep your ears peeled for any of the themes listed above. You’ll
usually have to ask questions to uncover whether the creditor has done anything wrong. For example,
your client is unlikely to say “my car has been repossessed and I don’t think the creditor followed the
legal process”. But they will tell you the car was repossessed, so then you can start asking questions
about whether they received the correct disclosure etc.
The Commerce Commission’s Red Flags tool will help with spotting unlawful conduct to look out for
and complain about. For more on what Red Flags is about check out this video
Summary
• Always keep your eyes and ears peeled for when a creditor might be taking advantage of your client.
• If they haven’t already, suggest the client raises the issue with the creditor first, or contact the dispute resolution scheme
• Search the Financial Service Providers Register to find which dispute resolution scheme the creditor is registered with.
• If in doubt, contact the dispute resolution scheme for help or guidance
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New resource to support the crackdown on unscrupulous mobile traders
The Financial Services Federation, which is the industry body representing responsible, non-bank
finance providers, has developed a new consumer awareness resource to support the Commerce
Commission’s crackdown on unscrupulous mobile traders, The Responsible Mobile Shop Code. The
Code is to help arm consumers with valuable knowledge for dealing with a mobile trader, especially
as we enter the expensive holiday season. These Codes are being offered to NBFCCT services to use
free-of-charge in their day-to-day business.
Should you wish to order physical copies of the brochure, please email [email protected], call 04 472 1731,
or message the Financial Services Federation Facebook page. PDF versions are also available which
you are welcome to use on your websites and other digital channels. A link to this can be
found here on their website.
Other resources the Financial services Federation has developed are the Responsible Lending
Guidelines, Code of Responsible Borrowing (in conjunction with the Federation of Family Budgeting
services), and the Responsible Credit-Related Insurance Code. Information about these Codes can also
be found at the link above.
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Strength-based training There have been a couple of strengths-based training sessions held in Auckland recently which were well attended, however at time of writing I have not had the opportunity to review the trainee feedback. There are further strength-based trainings scheduled for Whangarei, Hamilton and Wellington. There is no cost to these trainings and these have limited spaces still available so if you are interested in attending let Keith know via email ([email protected]).
• Whangarei – 14 November o Whangarei Anglican Care
1b Deveron Street Whangarei 9.30 – 4
• Hamilton – 20 November
o Catholic Family Support 100 Morrinsville Road Hamilton 9.30 – 4
• Wellington – 8 December
o Venue to be confirmed, but likely to be in Lower Hutt
Financial mentor introductory training As has been mentioned in previous newsletters there have been lots of requests for introductory
training for new financial mentors and while we are working towards a redesign, the training itself
continues. There are currently seven introductory training courses underway around the country
(with three further course being organised), which is really positive for the sector at this early stage in
the Trust’s development.
As always, please contact Keith to discuss your services specific training requirements.
Keep your eyes peeled for an email soon from Keith outlining an opportunity from Careerforce to
complete the NZ Diploma in Health & Wellbeing (Applied Practice – Level 5).
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Community Newsletters and media releases
Hui E! https://goo.gl/99yZZY
The latest MSD BFC newsletter https://goo.gl/Enq86i
Policy Watch newsletter https://goo.gl/jK1AuV
Commerce Commission media releases
Cash for CAB in Commission settlement with Tower
https://goo.gl/E49zcR
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Get in touch
Donna Allan Office Manager
Email [email protected]
Phone number 04 471 1420
Kate Henderson Financial Mentor Service Advisor
Email [email protected]
Phone number 04 471 1420
Keith Coppins Senior Training Advisor
Email [email protected]
Phone 027 324 7749
Rocky Webster Communications and Data Management Advisor
Email [email protected]
Phone 027 541 3889
Tim Barnett Chief Executive
Email [email protected]
Phone 021 260 4298