Disclosure Statement

Financial Advisers Act 2008 

FSP19543 (Financial Service Provider Registration Number)

What sort of financial adviser are we?

Basalt Group Ltd (trading as South Pacific Loans) is a Qualifying Financial Entity (QFE) under the Financial Advisers Act. It does not provide any licensed services other than as a QFE. 

Employees of South Pacific Loans and any nominated representatives (together “advisers) may provide you with financial advice relating to its products and services. South Pacific Loans is responsible for any such advice and must ensure that its advisers exercise care, diligence and skill in providing that advice to you.

The Code of Responsible Borrowing

Counterpart to the code of responsible lending

There’s two parts to this equation

Lenders have an obligation to lend responsibly

Lenders are regulated by the Credit Contracts and Consumer Finance Act and guided by the Code of Responsible Lending.

Borrowers have an obligation to borrow responsibly

This Code of Responsible Borrowing sets out the expectations of responsible borrowers, completing the other half of the equation.

It is voluntary, but sticking to this code shows your commitment to borrowing responsibly.

Talk to someone independent

Visit www.familybudgeting.org.nz or call 0508 BUDGETLINE (283 438) to find your nearest budgeting service.

It’s important you get some advice before taking on a loan or credit contract.

Talk to someone who is independent so you can be sure the advice is robust.

All our budgeting services ar independent and offer free, confidential and non-judgemental advice.

The code of Responsible Lending

The Code of Responsible Lending is also available at www.familybudgeting.org.nz

.This is part of the Credit Contracts and Consumer Finance Act 2003, available on www.legislation.govt.nz

Who is this for?

Why have a code of Responsible Borrowing?

This code is for anyone thinking about taking out a loan or entering into a credit contract.

82% of New Zealand families have debt of some kind, and collectively we spend more than we earn.

This Code of Responsible Borrowing will help you avaoid penalties, repossesion, stress and heartache. It establishes minimum expectations for New Zealanders considering a loan or credit contract.

What if you’ve been declined?

If a lender has declined your loan application, it’s because they don’t believe it would be responsible to provide you with a debt you may not be able to repay.

Talk to someone independent

Sometimes it’s hard to step back from your own finances and see the big picture. When you feel like this, it’s important to talk to someone independent – not another money lender.

We suggest you talk with a budget adviser, who will offer free, confidential and non-judgemental advice. We have more than 160 budgeting services around the country. Find you nearest by contacting:

0508 BUDGETLINE (283 438)

www.familybudgeting.org.nz

 

The code of Responsible Borrowing

1. Work out your budget

A responsible borrower is sure they can afford the repayments.

Your budget lists your income and expenses, and shows if you have a deficit or a surplus. It includes both regular and occasional items.

By making a budget showing your current income and expenses, you can see if there’s any room for additional expenses like loan repayments.

If your current budget shows a deficit, then a loan is not the answer.

2. Look at all your options

A responsible borrower considers whether there are other ways to meet their needs.

A loan might not be the right answer.

For example if you want to buy a car, think about: other forms of transport, rescheduling your appointments, or a smaller vehicle like a scooter. Think about all of these things before buying a car on credit.

Another example: if you want to buy something that’s not urgent, think about saving up and buying later.

Work and Income will sometimes advance small amounts to people on a benefit, to cover essential items. They recover the advance slowly without interest.

3. Find out more about it

A responsible borrower knows what they are signing.

You might need someone else to explain it to you – a translator or budget adviser, for example. Look out for details on the total cost of the loan including administration fees and what penalty fees could apply.

4. Provide real information

A responsible borrower provides all the information the lender needs to make an informed lending decision.

A responsible lender will ask you questions about your ability to repay, and may ask for things like bank statements, payslips, proff of debts etc.

A responsible borrower will not hide relevant information from the lender, or mislead them in any way.

5. Keep them informed

Unexpected life events can make repayments difficult. Talk to your lender when this happens. You might need to ask about their hardship provisions and talk too a budget adviser about your options.

The code of Responsible Lending

Our Contact Details

Basalt Group Ltd (trading as South Pacific Loans).

Cnr Mt Wellington Highway & Penrose Road
PO Box 132241
Sylvia Park
Auckland 1644

Telephone 0800 88 98 88

Our Products and Services

South Pacific Loans offers consumer credit products including personal loans, business loans, mortgages and insurance. The products may be provided by South Pacific Loans, its related companies, or third parties with which South Pacific Loans has agreements to sell their products. Advisers may receive commissions for selling these products.

What to do if something goes wrong?

We all know sometimes things can go wrong. If you wish to make a formal complaint about our products or service you have received we have a free internal dispute resolution procedure, which you can access as follows:

Telephone 0800 88 98 88

Write to:

Basalt Group Ltd (trading as South Pacific Loans),
PO Box 132241,
Sylvia Park,
Auckland 1644

If you have followed our internal dispute resolution procedure and your complaint remains unresolved you may refer the matter to the Insurance & Savings Ombudsman Scheme. See our Regulatory Information page for further contact details.

Who is South Pacific Loans regulated by?

South Pacific Loans is licensed and regulated by the Financial Markets Authority to provide financial advisers. You are welcome to report information about South Pacific Loans or its advisers to the Authority.

Their contact details are:

Telephone: +64 4 472 9830

Write to:

Financial Markets Authority,
PO Box 1179,
Wellington 6140

Website: www.fma.govt.nz

Rates and Fees

Terranet Guaranteed Title Report $20.53 plus $12.00

Terranet Comprehensive Title and Transaction Report $5.20 plus $12.00

Terranet fees $47.50 plus $6.00

Mortgage registration setup Lawyers fee $377.50

Mortgage discharge Lawyers fee $200.00

Mortgage discharge SPL processing fee $75.00

Motor web (VIR) fee $14.49 plus $6.00

Credit Check fee $8.17 plus $6.00

PPSR search $1.73 plus $6.00

PPSR registration $11.50 plus $6.00

PPSR deregistration $6.00

Administration fee $6 per month

Direct Debit payment fee $1.00 per payment

Standard set up fee $325.00

Additional statement fee $5.00

Email communication/collection fee $1.00

SMS communication/collection fee $1.00

Repossession Warrent Issueing Fee $39.00

Repossession and service fee (charged at cost) from $57.50

Overdue Letter fee $17.50

Dishonoured payment Letter fee $17.50

Hardship positive result variation fee $100.00

Loan Variation Fee $5 to $25 depending on complexity

Current standard Interest Rate 29.5

Default Interest Rate is a 10% premium on the Interest Rate

This disclosure statement is dated as at 06 June 2015

Settlement Rates and Fees

Settlement charge for loan with one vehicle ($82.80) plus one vehicle ($1.73 each) Total $84.53

Settlement charge for Loan with two vehicles ($82.80) plus two vehicles ($1.73 each) Total $86.26 (additional vehicles $7.73 each)

Settlement charge for mortgage ($82.80) plus discharge ($200) and processing fee ($75) and terranet ($47.50), (Total $405.30)

Settlement loss arising from full prepayment are calculated in accordance with the following formula as laid out in section 54(1)(a) of the Act.

Settlement request will be processed in a timely manner but due to compliance processees will take between three and five days to confirm.

Contract terms

Send an email to customercare@splnz.co.nz and we will forward you a copy of our standard Contract

Hardship

What to do if you suffer unforeseen Hardship.

If you are unable reasonably to keep up your payments or other obligations because of illness, injury, loss of employment, the end of a relationship, or other reasonable cause, you may be able to apply to the creditor for a hardship variation.

Lenders must comply with the lender responsibility principles when assessing hardship application, and provide written reasons if they decline a hardship application.

Under new rules borrowers can make a hardship application where they are already in default for more than two months, and they have not missed four consecutive payments.

Also borrowers can make a hardship application up to two weeks after receiving a repossession notice or Property Law Act notice. Lenders may not repossess consumer goods while a hardship application is being considered, unless the goods are at risk.

To apply for a hardship variation, you need to:

a) Make an application in writing; and

b) Explain your reason(s) for the application; and

c) Request one of the following:

• An extension of the term of the contract (which will reduce the amount of each payment due under the contract); or

• A postponement of the dates on which payments are due under the contract (specify the period for which you want this to apply; or

• Both of the above; and 

d) Give the application to South Pacific Loans Limited.

Do this as soon as possible. If you leave it for too long, South Pacific Loans Limited may not have to consider your application.

Lenders must follow specified time frames in processing hardship applications. Lenders cannot charge credit fees in relation to the hardship application however a hardship fee will be charged if the application has been approved.