Responsible Lending

Our commitment to you.

At Lenny, we are committed to responsible lending practices as outlined in the Responsible Lending Code of New Zealand. Our goal is to ensure that the financial solutions we offer, including new loan approvals on behalf of our Lenders and Payment Protection Insurance (PPI), are suitable and beneficial for your needs. Here’s how we uphold some of those responsibilities:

Assessing and Preparing New Loans:

• We begin by comprehensively understanding your financial situation, needs, and objectives. This helps us in identifying the most suitable loan options for you.
• We may require specific information from you, such as proof of income, employment status, credit history, and existing financial commitments. This is crucial for accurately assessing your ability to repay the loan.
• We conduct credit checks to understand your creditworthiness. This involves liaising with credit reporting agencies to access your credit report. This will not affect your credit score unless you proceed with the loan offer.
• Our team and our Lenders evaluate your financial situation to ensure that you can comfortably afford the loan repayments without facing financial hardship.
• We provide clear, concise information about the terms, conditions, and costs associated with the loan. This includes interest rates, fees, and repayment schedules.
• We take our role as your finance broker seriously and strive to provide services that are ethical, transparent, and tailored to your needs. If you have any questions about our process or require further information, please feel free to contact us.

Cooling Off. Your Right to Cancel.

Upon receiving your signed loan agreement, the CCCFA grants you a reconsideration period to review and, if necessary, cancel the contract. This ensures you have adequate time to evaluate the terms and confirm they meet your needs.

How to Cancel

Should you decide to cancel, it’s a simple process. Just send a written notice, preferably via email, to either us or your creditor. It's a straightforward way to exercise your right, and we're here to assist you through each step.

Important Considerations if You Cancel:

• Returning the Advance: If you have already received the loan amount, it will need to be returned.
• Interest and Related Costs: There may be interest accrued or costs related to setting up the loan for the period you had the advance. You will receive a detailed statement of any amounts that are due.
• Motor Vehicle Contracts: If your contract involved a motor vehicle and you’ve taken possession, it’s not possible to return the vehicle. Instead, a cash settlement is required within 15 working days from the date of your cancellation notice.

Cancellation Time Frame

The CCCFA specifies a 7 working-day period for you to cancel your loan agreement after receiving the digital copy. Remember, this period doesn’t include weekends or public holidays.

We are committed to ensuring you feel fully informed and comfortable with your loan decision. If you have any questions or need further clarification, please don’t hesitate to get in touch. Your confidence in your financial choices is our top priority.

Facing Financial Hardship? Here's How We Can Help.

Life sometimes has a way of surprising us, and we understand that these surprises can sometimes make it tough to keep up with loan payments. If you're finding yourself in a tight spot financially.

The Importance of Communication

If you're struggling to make your loan payments due to unexpected circumstances, the best thing to do is to get in touch with your creditor right away. Prompt communication can open up more flexible options to help you manage your situation.

Understanding 'Hardship' Under the CCCFA

Under the Credit Contracts and Consumer Finance (CCCFA) Act 2003, 'hardship' is defined as a situation where unforeseen events make it difficult for you to meet your loan obligations. This could be due to various reasons like illness, loss of employment, a relationship breakdown, or the death of a partner or spouse.

When to Apply for a Hardship Variation

You're eligible to apply for a 'Hardship Application' to modify your loan agreement if:

• You're facing unforeseen hardship.
• Making regular debt repayments becomes a significant challenge.
• You believe adjusting some terms of your loan could make the repayments manageable.

However, there are certain conditions where applying might be restricted:

• If you've been in default for over two months.
• If you've defaulted for more than two weeks following specific legal notices.
• If you've missed four consecutive repayments.

Note: You're generally allowed to apply for hardship just once every four months on the same grounds, unless your creditor agrees otherwise. But, catching up on defaults can re-qualify you to apply again.

How to Apply for Hardship

To start a Hardship Application:

• Write to your creditor, explaining your situation and why you're seeking a change. You can do this via email or traditional mail.
• Clearly state the changes you're seeking, such as extending the contract term, rescheduling payment dates, or both.

Your creditor will review your request and inform you of the next steps. If no further information is needed, you should expect a decision within 20 working days.

Should your application be accepted, your creditor might offer a new loan agreement or propose modifications to the existing one. Be mindful that accepting these changes might incur additional fees.

Ready to Apply?

If you're considering a hardship application, check your loan contract for your creditor's contact details.

Remember, you're not in this alone. The key is to communicate openly and explore the options available. We're here to help and support you through these challenging times.

The information provided on this page is for informational purposes only and is not considered financial advice.