Business resources

Providing your credit terms and conditions allow it, we automatically calculate the recovery fee based on the account balance to ensure you receive the principal amount back. You do not need to add any collections fees to your account when referring to Baycorp. We will need to review a copy of your terms and conditions to ensure that you are entitled to add recovery fees to the account.

Yes there is. Please contact our Client Services team and they will discuss this with you.

Default loading is facilitated by Baycorp on behalf of its clients by arranging the uploading and updating of debt information into the national Credit Bureau. This is undertaken in agreement with our customers if the account has not been paid and the debt has not been disputed. It ensures that other creditors are aware of your claim and may hinder your debtor from receiving any further credit.

Generally, yes. If the debt is loaded for less than $100 there will be no credit default. We send an initial demand letter advising your customer that your account has been referred to us for collection and the account be paid within 14 days or further action may be taken. If full payment has not been received within 14 days, unless otherwise agreed, we will default list the debtor with a credit reporting bureau.

Please note: If the debt incurred in NZ this will affect their credit rating here in NZ only, not overseas.

As a minimum, we need a copy of your terms of trade, your customers full name and last known physical or postal address. We need proof of the debt such as copies of contracts, invoices, statements or other documentation, plus information to identify your customer, such as their date of birth. The more information you have about your customer and the overdue account, the more effective our recovery processes can be.

This will depend on the amount of the debt and the type of legal action required. Please contact our Client Services team and they will discuss this with you.

On 6 June 2015, significant changes to New Zealand’s consumer credit legislation came into force.

If you are in the business of providing credit to individuals or small business, you may have to make changes to a number of your lending processes. To assist you we have set out below a non-exhaustive list of matters you may want to consider.

In extending consumer credit, you, as a lender, must comply with the principles in section 9C of the CCCFA and the responsible lending code. As a responsible lender, you must exercise the care, diligence and skill when advertising, before entering into the credit contract and in managing the credit contract.

For example, you must ensure that you have made reasonable enquiries to satisfy yourself that your borrower can make repayments without suffering substantial hardship.

If you do not comply with the lender responsibility principles when you extend credit, you may find significant challenges in collecting on debt if your borrower subsequently defaults.

For more information on the lender responsibility principles, the responsible lending code, and how to comply, please see here.

Under the new rules, you are now required to disclose on your website, or otherwise make publically available the following information:

• your standard form credit contract terms; and
• interest rates, fees and charges that will be charged for the extension of credit.

You need to make sure you have fully disclosed any changes, agreed to or otherwise to the credit contract.

You also need to ensure that you make all disclosures necessary to guarantors.

Borrowers can now make hardship applications while they are in default if they are in default for no more than two months and they have not missed more than four consecutive payments. Have you updated your hardship processes to ensure you deal with hardship applications in accordance with the CCCFA?

You should have processes in place to warn your customers that if they make only minimum repayments, they will pay more interest and it will take longer to pay off the unpaid balance.

If you sell debt, you must send an assignment to each affected customer within 10 business days of the assignment. On the notice you must put the buyer’s contact details, Financial Service Provider (FSP) number and external dispute resolution scheme details.

We can help you to comply with this obligation, just ask us how.

The Credit Repossession Act has been repealed and its provisions have been included into the CCCFA. There are significant changes, and you may want to consider updating your terms and conditions and your repossession processes to comply with these changes.