Salvation Army calls on Parliament to take action on debt collection and repossession law

The Salvation Army is calling for the Government to resolve "critical issues" with New Zealand's debt collection and repossession law, saying too many consumers are suffering harm and harassment.

Debt (file picture). Source:

In a release this morning, Salvation Army's Ronji Tanielu said that urgent and practical action is needed to prevent harm caused by problem debt.

"There has been a lot of good focus recently on the interest rate cap campaign," Mr Tanielu said.

"But the proverbial light needs to continue to be shone on other important credit contracts and financial issues such as debt collection and repossession so that they are not ignored or forgotten in these public policy discussions and developments."

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The community group plans to launch one in Wellington as well. Source: 1 NEWS

Mr Tanielu has authored a paper which includes reports from front-line Salvation Army budgeters who speak of unethical and aggressive behaviour from debt collectors and repossession agents.

"Our financial mentors talked about some debt collectors turning up unannounced to people's homes, contacting friends and family of the debtor, making relentless phone calls, and other intimidating behaviour," Mr Tanielu said.

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The Salvation Army, Fincap and Komiti Pasifika join Breakfast’s John Campbell to talk about a new bill designed to make lenders act more responsibly. Source: Breakfast

The Salvation Army is now asking whether a member of parliament would be willing to take on the issue by introducing a new, single law to govern and regulate the practices.

"Maybe there is a brave, keen member of Parliament that is willing to take this challenge on board and advance a new debt collection law," Mr Tanielu siad.

The full paper can be viewed here.