New code for debt collectors

Under the code FSF members will limit the contact they have with a debtor to certain hours of the day, including not making face-to-face contact on Sundays (unless by prior arrangement with the debtor) and only where there is a genuine purpose for them to make such contact.

FSF’s debt collection members will, if the debtor prefers, work with a financial mentor or an authorised representative appointed by the debtor (with an appropriate privacy waiver in place). The code also outlines where debtors can go to make a complaint about the debt collector’s activity.

The code formalises FSF members’ commitment to ethical standards of debt collection practices that go beyond what is required by law.

The FSF represents 90 responsible non-bank finance providers across the country. About 48% of personal lending in New Zealand is financed by the non-bank FSF members.