Money Matters NZ Super Fund’s Record Return The NZ Superannuation Fund returned a record 25.8% in the 12 months to 30 June 2013. The Fund, which invests globally in order to help pre-fund NZers’ universal superannuation entitlements, is now worth $23 billion (compared to $19 billion a year ago). Since it started in September 2003 the Fund has returned 8.8% per annum and is comfortably ahead of its key long-term performance benchmarks. More is at http://www.nzsuperfund.co.nz/news.asp?pageID=2145831983&RefId=2141743251 Back to top
The Peril of Guaranteeing Somebody Else’s Debt The Banking Ombudsman supported Money Week 2013 by publishing a guide to ensure people considering guaranteeing somebody’s debt understand the potential risks to their own finances. Their Quick Guide on what people need to think about when deciding to guarantee somebody else’s lending aims to help people be more informed and ask themselves the questions they need to consider before becoming a guarantor. The guide is one of a series of Quick Guides on everyday banking and contains two cautionary tales. All Quick Guides are available on the Banking Ombudsman Scheme website and are used by banks and community organisations to help the public with banking issues. More Quick Guides on topical banking issues are in the pipeline, including one on the restrictions on low deposit mortgages which takes effect in October. The Quick Guide is at https://www.bankomb.org.nz/news-and-publications/quick-guides/item/guaranteeing-somebody-else-s-lending Back to top
More Complaints: Lenders & Finance Companies Complaints against lenders and finance companies are on the rise says one of the financial services industry’s bigger dispute resolution schemes (Financial Services Complaints Ltd -FSCL). In the year to end June 2013, complaints against lenders and finance companies rose sharply, more than doubling in number from the previous year (from 17 to 39 complaints) and making up more than a quarter of all cases FSCL investigated. The financial product most complained about was consumer credit arrangements, accounting for 35 of the 149 complaints investigated in the last year. Most involved personal loans to consumers for motor vehicle purchases. Complainants typically alleged unlawful repossession, or unfair or oppressive conduct by the lender. FSCL has some tips for consumers taking out personal or other loans: •
read the loan contract carefully before signing it;
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take time to understand the contract before signing it – there is no need to sign on the spot;
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ask the lender questions if you do not understand a particular clause or clauses;
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make sure you know the rate of default interest and charges you will have to pay if you can’t meet loan payments;
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make sure you understand what recovery action the lender may take if you default on loan payments;
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if possible, obtain legal or professional advice, perhaps through a community law centre, before signing the loan contract; and
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if your circumstances change, let your lender know as soon as possible as it may be possible to negotiate new or temporary loan repayment arrangements.
More is at www.fscl.org.nz Back to top
25 –Bulletin Aotearoa September 2013
Rural Women NZ, enquiries@ruralwomen.org.nz, 04 473 5524