Payday Advance – helping Kiwis since 2006

Please read the following prior to applying

Purpose of this page and definitions used

This information page is provided as a guide to assist our valued customers understand our products, services and processes. Every endeavour is made to ensure the information on this page and website is correct, complete and current, however the information on this page and website does NOT form part of your loan agreement unless specifically stated otherwise. Please read your loan agreement carefully before deciding to proceed with a loan from us.

The following definitions apply:

"PDA" means Payday Advance Limited.
"This website" means www.paydayadvance.co.nz, the website of PDA.
"We" or "us" means PDA.
"You" means you the person accessing this website, applying for a loan or otherwise communicating with us.

What type of loans do we do?

We provide short term unsecured loans.
Amounts range from $100 up to $750.
Repayment terms based on your pay cycle of: up to 6 weekly or 3 fortnightly repayments or 1 monthly repayment.
Your personal loan limit will be determined based on our affordability index* – a large component in determining your affordability is the amount of your regular after tax income. Your personal loan limit will be calculated at the beginning of the application process. As a responsible lender, we will never lend more than a small percentage of your regular pay.

* Our index helps ensure you can meet the agreed obligations under this loan without causing you undue hardship. If you feel this is not the case, please do not sign the Loan Agreement.

Would a loan from us be right for you?

Before obtaining a payday loan, you should consider whether a payday loan is a sensible choice that meets your particular financial needs and situation.

Our loans are designed only for short term use. Often they are used in an emergency or where a short term cash shortfall has occurred that is expected to be resolved in a short period of time – for example, paying an unexpected, urgent bill when you don’t have enough funds but know that the next payday is just around the corner. A payday loan could also come in handy to cover:

• An urgent medical bill
• Car repairs
• An unexpectedly high power bill
• Fridge or washing machine repairs

As a responsible lender, we do not encourage our customers to use our loans to pay for inessential items like birthday presents, shopping or holidays.
Even though we do our best to try and ensure our cash loans are affordable to repay, only you can decide if the cost of a loan from us is worth it for your particular situation. These loans are definitely not appropriate for long term borrowing or to substitute existing debt.

There may be other alternatives, such as borrowing from a family member, a friend or a colleague or, for example, getting a credit card advance.
We are not in a position to be able to advise you if a loan from us is appropriate for your specific situation. You may need to seek your own advice in regard to the loan and/or the loan agreement.

Some websites you may find helpful are: Sorted, Commerce Commission website, Ministry of Consumer Affairs website, www.cab.org.nz, www.capnz.org.

Who do we lend to?

• Subject to our loan approval process, we generally lend to New Zealand residents and citizens over 18 years old in stable, ongoing full-time employment, earning at least $250 a week after tax.
• Unlike some lenders, we do not lend to unemployed, people whose main source of income is a benefit, temporary employed, pensioners, part-time and self-employed individuals earning less than $250 a week or getting paid sporadically.
• Before we make a lending decision, we will undertake some checks on your personal and employment details and your current short-term financial situation – as a way of assessing the affordability of the loan. We will not contact your employer or undertake a credit check during the approval process, unless authorized by you. If you allow a credit check (which we recommend) then this will result in a lower interest rate applying to your loan.

How much do our loans cost?

The interest rate applicable to a loan depends on whether it is your first loan with us or a renewal; and if it is a first loan – whether you would like to opt-in for a credit check.  Applicable interest rates are:

Type of Loan Annual Interest Rate Approx Daily Interest Rate First loan – with no checks 624% 1.70% First Loan – with credit check 624% 1.70% Renewal clients 624% 1.70% Preferred clients* 520% 1.42%

*Preferred client status is a discretionary status conferred on customers at PDA’s discretion.

Default interest rate
If a payment dishonours for any reason, an additional default interest rate of 104% per annum will apply to the overdue amount on top of the annual interest rate stated above until the account is brought up-to-date.

Interest calculation
Interest is calculated daily by multiplying the outstanding balance of your loan by the Annual Interest Rate divided by 365 and at the end of seven days the calculated interest for those seven days is then added to your loan balance.

Fees
Establishment Fee

New Clients Renewals Preferred Clients Applicable establishment fee $30 $20 $15

There are no other fees to pay unless you initiate an action of a type which incurs a fee or if you default.

Free services
Unlike some other online lenders, we DO NOT CHARGE direct debit fees.
There is no charge to obtain a current statement of your loan or to talk to our customer service team.
Optional Fees
A $10 fee applies if you request a change to your loan or a copy of a document.
Express Payment Fee
If you wish your loan to be advanced to you by Express Payment, a $20 fee applies.
Default Fees & Charges
We do not like to charge additional fees, however in the event of a default (e.g. a late payment or non-payment) the following fees & charges apply: $50 for a dishonoured payment; $10 for each reminder letter; $10 for each week you are in default;
We do not charge any fees for assignment of wages or lodging your default with a credit agency and/or collection agency (however collection agencies may charge you their own fees, plus actual collection & legal costs incurred in collecting any overdue amounts). We also can charge collection and legal costs as incurred.
Please refer to your Loan Agreement for further details in regard to Interest and Fees.  

We pride ourselves on the transparency of our service – there will never be any hidden fees.

How and how fast will my application be processed?

In general, it takes us about 20 minutes to review a new loan application once we receive all the paperwork we need. Renewals are generally much faster.

Once you send through all the documents we require, the Lending Department will need to conduct some checks in an effort to ensure the affordability of the loan and verify personal and employment details. We will not contact your employer during the approval process, unless you authorize us to do so.

Once we have made a lending decision, we will inform you by email and TXT.

How do I find out the status of my application?

You will be provided with a copy of your loan agreement and all required disclosures BEFORE you are given a loan.

Please read your loan agreement and any communications from us thoroughly and understand the obligations you are committing to before you agree to the loan. Please seek independent advice if you do not understand any of the terms and conditions of the Loan Agreement.

You can contact our friendly customer service team on 0800 222 577 or service@paydayadvance.co.nz with any questions you may have.
If any information/paperwork is missing or when the lending decision has been made, you will be notified by email and TXT.

Payday Advance is a responsible lender

You can find more information in the Responsible Lending section of our website.

Our renewal policy

To be eligible for a renewal loan:

• you will need to have fully repaid any prior loans or
• you will need to be current on the payments of your existing loan*

* Except you cannot apply for a renewal on your first loan with us or if you are applying through an electronic signature option.

In either situation the renewal loan application and loan amount will be subject to our discretion and we may request bank statements or/and a proof of address or/and pay slips, however this is often not done unless you have not transacted with us for a few months.

I have changed my mind – how do I cancel the loan?

You have a right to cancel your loan within 5 working days. If you cancel you loan, we can charge you:

• The amount of any reasonable expenses that had to be paid in connection with the Loan Agreement and its cancellation;
• Any interest accrued for the period from the day you received the loan until the day you repaid the balance.

Refer to page 1 of your Loan Agreement for full details on your right to cancel and your obligations on cancellation.

I can’t meet my repayments

You should know when your payday loan is due, and make sure you have enough funds in your account on the due date so you do not incur any dishonour and or collection fees and additional interest charges.

You should contact us promptly as soon as you are aware that you might not be able to meet your repayments. We understand that unforeseen things happen, so if you find yourself suffering unexpected hardship and your financial obligations with PDA have become overwhelming, you must get in touch with us immediately so that we can work together and try to come to an arrangement that could help you repay your loan as soon as possible.

Unforeseen hardship may be caused by:

• Illness
• Loss of employment
• Serious injury
• End of a relationship
• Any other reasonable issue

Please be aware that you cannot claim financial hardship if:

• You are in arrears on your loan;
• You balance owing is in excess of your credit limit; or
• You have taken out the loan knowing you would not be able to repay it.

We are committed to collecting your past due loans in a professional, fair and lawful manner. Further information in regard to situations of financial hardship can be found here:
http://www.consumeraffairs.govt.nz/for-consumers/credit-and-debt-1/cancelling-or-changing-your-contract-1/hardship

I have a complaint

Please refer any complaint you have to the collections officer or customer service person in contact with you. They should endeavour to resolve any complaint you have promptly and fairly. However if this initial attempt to resolve the matter has failed, please address the issue to compaints@paydayadvance.co.nz. We have an internal complaints process and undertake to investigate any concerns promptly and fairly. We have up to 40 days to respond to your complaint.

We are a member of an independent dispute resolution scheme operated by Financial Services Complaints Limited (“FSCL”) and approved by the Ministry of Consumer Affairs. If you are not satisfied with our response, you may then refer the matter to FSCL by emailing info@fscl.org.nz or calling on 0800 347 257.

FSCL does not deal with complaints about standard fees or interest rates unless such fees and/or interest rates are not in accordance with your loan agreement. There is no cost to you to use the services of FSCL.

Contact details

Phone 0800 222 577 or (09) 521 1035 Fax (09) 521 1038 Email (Lending Department) service@paydayadvance.co.nz Mailing address PO Box 133085, Eastridge, Auckland 1146, New Zealand Registered address 188 Quay St, Auckland 1010, New Zealand

Payday Advance is government registered

Yes, we are a Registered Financial Service Provider no. FSP4441.
We support the New Zealand Government requirement for Financial Service Providers to register with the Ministry of Economic Development in order to conduct business in New Zealand.

• The governing legislation is The Financial Service Providers (Registration and Dispute Resolution) Act 2008. The Act provides many consumer benefits that will ensure only registered entities like PDA can operate in New Zealand.
• You have access to the electronic register of Financial Service Providers which will help you to be comfortable that the company has passed the Government requirements for registration;
• You can be confident that the directors and senior officers have all been screened by Police checks and passed.

Compliance with legislation

In addition to our requirements to register as a Financial Service Provider under the Financial Service Providers (Registration and Dispute Resolution) Act 2008, PDA and our activities in providing financial services, is also governed by several other pieces of legislation including by way of examples: The Companies Act 1993; The Fair Trading Act; The Privacy Act 1993; The Unsolicited Electronic Messages Act 2007; and The Credit Contracts and Consumer Finance Act 2003. PDA is committed to ensuring it acts as a good corporate citizen in full compliance with all applicable laws and regulations.

Disclaimer, errors & omissions

Whilst every endeavour is made to ensure the information on this page and website is correct, complete and current, the information on this page and website does NOT form part of your loan agreement unless specifically stated otherwise. Please read your loan agreement thoroughly before deciding to proceed with a loan from us.