Alert
Information For Lenders

Some people who apply for credit are not responsible borrowers

Most people who apply for credit for services, goods or cash loans, understand what they are signing and are responsible borrowers. Some people however, lack the capacity to make good financial decisions or understand their responsibilities.

Some people may not be completely honest about their financial situation, or personal factors that may affect their application for credit.

People may not fully disclose their mental health issues, gambling and other addictions, or financial situation that would indicate they are vulnerable borrower under the Responsible Lending Code.

They may also be pressured by other people into taking out loans (or guarantoring loans) that they don’t want and can’t afford.

Debt Blocker helps your company identity risky clients who can't afford to repay their debt.

People who sign up for Debt Blocker recognise that they are vulnerable borrowers and they are likely to struggle to repay a loan that they take out in the future when things get difficult.  

It is very likely that these loans will not be paid back and have to be written off.

Often vulnerable borrowers make applications to multiple companies that are turned down, but each application costs the company time and money.

Debt Blocker helps your company avoid processing applications that will be declined.

 

 

Register for Debt Blocker

 

Search Database

About Debt Blocker

 

What is Debt Blocker?

Debt blocker is a voluntary list where people can indicate to lending companies that they don’t want to be given credit.  

This will be useful for people with risky spending habits, or are concerned they may take out loans they can’t afford when things are difficult.

When they sign-up, their name and DOB go onto a secure list, that can be searched by lenders if they apply for credit.  This search will only give a “Yes” or “No” whether a person is on the list.

Debt Blocker Ltd. is a New Zealand company that exists solely to manage the database, and does not provide credit or financial services or advice to anyone.  Profits from the company will be given back to the community to help people avoid unsustainable debt.

Why would I search Debt Blocker?

You can only search Debt Blocker as part of an application for credit.

Searching Debt Blocker may help you to:

  1. Identity vulnerable borrowers.
  2. Identify people that are not being completely honest in their application
  3. Identify clients that are  highly likely to default on loan repayments, and the loan may need to be written off.
  4. Avoid paying for further credit checks and loan processing.
  5. Avoid lending to people who are being coerced into taking out loans (or guarantoring  loans) by other people.

How is Debt Blocker different to other credit search companies?

Debt Blocker is voluntary, and the reasons for someone signing up may not be captured by a traditional credit report.  For example, someone may have a good credit history but has developed mental health issues or addictions that place them at high risk of default.  

Debt Blocker will also help identify people with a good credit record who may being forced into taking out a loan on behalf of someone else.

What will Debt Blocker cost?

 

Plan Price Searches Additional Search Price
Single search $2.00 0 $2.00 +GST
20 searches per month $20.00 +GST 20 $1.00 +GST
50 searches per month $35.00 +GST 50 $1.00 +GST
100 searches per month $60.00 +GST 100 $1.00 +GST
250 searches per month $120.00 +GST 250 $0.50 +GST
500 searches per month $180.00 +GST 500 $0.50 +GST
1000 searches per month $250.00 +GST 1000 $0.50 +GST
1700 searches per month $350.00 +GST 1700 $0.30 +GST
2500 searches per month $450.00 +GST 2500 $0.30 +GST
Unlimited searches per month $500.00 +GST Unlimited $0.00 +GST
Unlimited searches per year $5000.00 +GST Unlimited $0.00 +GST

If you wish to discuss an alternative plan please contact us.

What information is held by Debt Blocker?

Only their full name, and date of birth are recorded.  They will not be asked why they signed up, anything about their financial record, or for any other personal information.

Why would someone sign up for Debt Blocker?

There are several reasons why they might want to sign up:

  1. They might have risky spending habits.
  2. They might have a problem with gambling, drugs or alcohol.
  3. They are worried they might be pressured into loans (or guarantoring loans) they don’t want, or can’t pay for.
  4. They might have a mental illness that affects their ability to make good decisions when they are unwell.
  5. They are worried that your friends or family members could put pressure on them to borrow money for them.
  6. They know that paying back a new loan will really stress them out.

What should I do if an applicant is on Debt Blocker?

If you get a “Yes” result, we encourage you to be sensitive with how you use the information.  There are many different reasons why someone has signed up, and they may be under pressure from someone else to take out a loan, who may be present.  It may be easiest to just tell them the loan is declined.

They have clearly identified themselves as a vulnerable borrower, and the likelihood of repayment without suffering substantial hardship is low.  If you lend to this person, then you may not be complying with lender obligations under the Responsible Lending Code, and you may be prosecuted.