Many of the clients that you work with may be dealing with multiple issues such as poverty, mental health issues, addictions, family violence and debt that make it difficult for them to manage.
Sometimes, helping people to get on top of their finances can reduce stress, so they are able to address some of their other issues.
There is a lot of pressure placed on vulnerable people to take out new loans, especially when they don’t understand what they are signing, or what their responsibilities are.
There may also be pressure on family members to take out (or guarantor) loans for other people.
It can be frustrating when you know that people want to sort their life out, but when things get difficult are likely to get credit they can’t afford, and undo all the work they have done.
Debt Blocker is a tool to help people take responsibility for their finances.
You can help your clients sign up for Debt Blocker online, or you can print a form for them to sign.
We ask that you check photo ID to establish that they are not signing up someone else.
You are then able to sign people up online, or you can print out a form to sign, and upload or post it to us.
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.
Once an agency is registered with Debt Blocker, you are able to help individuals sign up for Debt Blocker. You can do this online, or print out a copy of the form and send it to us. Your role is to ensure that the person is:
Only their full name, date of birth, and the town you live in are recorded. We ask for the your town in case there is someone with exactly the same name and date of birth as them.
Debt Blocker will never record why someone signed up, anything about their financial record, or for any other personal information.
There are several reasons why they might want to sign up:
The lending company will search to see if they are on the list when they apply for a loan, and they will only get a Yes or No response.
Although Debt Blocker cannot legally stop a company from giving the person credit, but if they do then they do so at their own risk. If they give credit to someone on the list, then they will be in breach of the Responsible Lending Code and may be prosecuted.
Only Registered Lending Companies can search Debt Blocker as part of a credit application for a fee, and they will only get a Yes or No response.
They may not tell anyone else that someone is on Debt Blocker.
No organisation or individual can access the list of people on the Debt Blocker list.
Debt Blocker will not affect a person’s credit rating as no credit rating agencies can access our database.
There are two ways:
They will also need to provide photo ID when they sign-up. This is to make sure that they are not signing up someone else.
They may ask to come off Debt Blocker at any time through a registered social services agency (or have a JP witness them sign a form) and then there is a stand-down period of 30 days.
After this time their record will be permanently deleted from Debt Blocker. If they want to sign up again, they will have to do a new sign up.
It will cost the person and the social services agency nothing.
There are many sources of support and budgeting services throughout the country
Useful information and a database of financial mentors and budgeting services.
Useful information, tools and resources to help you get control of your finances.
Free legal help throughout New Zealand.
Information about your rights when borrowing, and your options for dealing with problems or financial hardship.
A database of social service near you to help with addictions, budgeting, mental health issues, legal and other social issues.