public-notices

The Government introduced new high-cost lending rules on 1 May 2020 and the remaining rules were introduced on 1 June 2020.

The following changes have been introduced and apply to all loans approved on or after 1 June 2020:

1.The daily rate of charge (excluding default fees) payable on a high-cost loan (and any related loan) is capped at 0.8% per day.

2.Restrictions on providing high-cost loans to repeat borrowers. A repeat borrower is someone who:

•Already owes money on a high-cost loan with another lender

•Owed money on a high-cost loan to another lender within the last 15 days

•Has entered into two or more high-cost loans in the last 90 days

If you have any questions, please do not hesitate to contact our customer happiness specialists on 0800 27 28 36 or email enquiries@savemybacon.co.nz.

The Government brought forward the start date of specific new rules and regulations applying to your loan, commencing from Friday 1st May 2020.

We have therefore made some changes to our existing loan products (both the Mini and KickStart loan) in accordance with these regulations. These changes will take effect for all loans approved on or after 9pm Thursday 30th April.

1.Cap on total interest and fees – the total amount of interest and fees you repay under your loan (and any related loans) cannot exceed the principal (initial amount advanced to you):

•For example, if you borrow $1,000, you cannot repay more that $1,000 in interest and fees, therefore the total amount for you to repay cannot exceed $2,000

2.Change from compound interest to simple interest – compound interest is calculated on the principal plus accrued interest. This has changed to simple interest, which is calculated on the principal, or on that portion of the principal that remains outstanding.

3.Default fees capped – default fees cannot exceed $30

What does this mean for loans approved prior to 9pm, Thursday 30th April
The changes will not apply to any loans approved prior to this time.

What does this mean for loans approved on or after 9pm, Thursday 30th April
The changes will apply to any loans approved prior to this time.

If you have any questions, please do not hesitate to contact our customer happiness specialists on 0800 27 28 36 or email enquiries@savemybacon.co.nz.

Due to increased transactional costs associated with establishing a loan, from 10am Wednesday 4th December 2019, SMB will be increasing the establishment fee on its Mini loan to $50 and introducing a $50 establishment fee for the KickStart loan.

Please refer to the full breakdown below confirming SMB’s revised fee structure. These changes will take effect for all agreements dated on or after 10am Wednesday 4th December 2019.

Mini Loan

Activity	Historical fee	Revised fee
Loan establishment	$25	$50
Account maintenance	$5 chargeable on the first day of the loan and then every subsequent 30 days within the loan term	$0

KickStart Loan

Activity	Historical fee	Revised fee
Loan establishment	$25	$50

What does this mean for loan agreements dated prior to 10am Wednesday 4th December 2019?

The new fee structure will not apply to any agreements dated prior to this time.

What does this mean for loan agreements dated on or after 10am Wednesday 4th December 2019?

The new fee structure will apply to any agreements dated on or after this time.

If you have any questions, please do not hesitate to contact our customer happiness specialists on 0800 27 28 36 or email enquiries@savemybacon.co.nz.

Regards,

Save My Bacon

As a result of business growth, automation and process improvements, we have adjusted our fee structure to better reflect workflow and effort and, as a result, there are a number of changes that reduce the overall cost applicable to our Mini loan. These changes will take effect for all agreements dated on or after Tuesday 5 September 2017.

Please refer to the table below highlighting our revised fee structure.

Activity	Historical fee	Revised fee
Loan establishment	$25	$25 (unchanged)
Direct debit	$5 per transaction	$0
Account maintenance	N/A	$5 chargeable on the first day of the loan and then every subsequent 30 days within the loan term
Loan default	$60 per default	$30 per default
Wage Deduction Authority (WDA)	$60	$15
Loan extension	$30	$15
Debt collection	$150	$50

What does this mean for loan agreements dated prior to Tuesday 5 September 2017?

Direct debit fees (not account maintenance fees) will still apply to these agreements for the lifetime of the loan. Reduced loan default, WDA, loan extension and debt collection fees will apply from this date.

What does this mean for loan agreements dated on or after Tuesday 5 September 2017?

The fully revised fee structure, as outlined in the table above, will apply from this date.

If you have any questions, please do not hesitate to contact our customer happiness specialists on 0800 27 28 36 or email enquiries@savemybacon.co.nz.

Regards,

Save My Bacon

Since 1 April 2012, credit providers have been in a position to share more information with credit bureaus. Comprehensive Credit Reporting (CCR) allows more information to be collected, providing a more balanced view of an individual’s credit history. Information contained in a non-CCR credit report is considered ‘negative’ or ‘adverse’ credit information. CCR allows an entity to report the following information in addition to an individual’s negative credit history:

- 24 months’ worth of repayment history;

- credit limits (amount of credit extended);

- account status (initiated and closed dates);

- types of account; and

- credit provider’s details.

What does this mean for Save My Bacon’s customers?

As will be reflected in all borrower agreements dated on or after Tuesday 5 September 2017, Save My Bacon will be able to adopt CCR for the reporting of customer credit information to the bureau. This means that Save My Bacon can choose to report on a customer’s full credit history. Therefore, if a customer continues to make their Save My Bacon loan repayments on time, this can positively impact their credit score, thus improving their overall credit profile. Please note, however, that CCR can also have a negative impact on a customer’s credit score if repayments are missed and/or effected after their due date(s). This could adversely impact a customer’s ability to obtain further credit in the future.

What does this mean for Save My Bacon?

By utilising CCR, the details available to Save My Bacon on a customer’s credit file are more current. Typically, negative data provided via the standard reporting mechanism can take months to reach credit bureaus in New Zealand, whereas positive data supplied via CCR is periodically updated (usually on a monthly basis). A more comprehensive check on a customer’s financial history, with greater visibility of repayment behaviour, will allow Save My Bacon a greater insight into the customer’s ability to manage their future financial obligations.

If you have any questions, please do not hesitate to contact our customer happiness team on 0800 272836 or email enquiries@savemybacon.co.nz

Regards,

Save My Bacon

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