Lender writes off 'unaffordable' $14,000 car loan, repays fees and interest

Financial Mentors can help with a range of things including advocating for clients when it comes to breaches of the Credit Contracts and Consumer Finance Act 2003 (CCCFA). We have seen cases where a customer has been sold an item and the vendor has not done the affordability calculation correctly leading the customer into hardship. Yes the customer should be making sure they can afford such loans but not everyone has that financial capability and that is why it is important that vendors are doing these things correctly.

Stuff.co.nz has an article on a case where a man was approved for a car loan but was actually unable to keep up with the payments

The man took out a $14,070 loan May 2019, but was soon struggling to make repayments. In December 2021, he sought help from a financial mentor who asked the lender for the loan’s affordability calculation.