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.
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 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.
You can only search Debt Blocker as part of an application for credit.
Searching Debt Blocker may help you to:
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.
|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.
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.
There are several reasons why they might want to sign up:
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.