Important Things You Should Know

Make sure you understand what you are committing to when you sign up for a loan

We will do our best to make sure you understand everything about your rights and obligations when you take out a loan.
To help with this you will be provided with:

  • A loan agreement to sign which includes the rights and responsibilities for both you and us
  • The repayment amounts,  terms, conditions, interest rates, and fees.
  • The obligations that come with having a loan, and the results of not repaying it. The results of not repaying the loan might include a bad credit rating and extra collection fees.

Lending Advice Video

Not sure if you should get a loan? Look at the videos called “It’s all good” from the NZ Commerce Commission which explain your rights. It’s all good

Cost of borrowing
There are 2 types of loans supplied by Acorn Finance; secured and unsecured Medium Term Loans

Medium Term Loans (Unsecured)
These loans are amounts up to $2000 and the payments can be spread over 6 – 26 weeks, depending on the loan amount. No security is required.
The interest rate ranges up to 49.5% per year (API) and is calculated on a daily basis and applied weekly to the loan. The interest rate is fixed for the term of the loan.  The interest rate for all new applicants is 49.5%
An Establishment Fee of up to $100 is charged for every new loan
There is a Monthly Administration Fee of $6.10 per month

Other charges that may apply:-
Express Payment fee of $5 if the cash is to be advanced within 60 minutes of loan approval
Late or missed loan repayments may result in serious money problems for you. If payments are missed then you may be charged a fee of $10 for each reminder letter, email, phone call or text sent to you.

Secured Loans
The interest rate for secure loans ranges up to 34.95% per year, depending on your credit history, your level of security and size of the loan. Interest is calculated on a daily basis and applied monthly. The interest rate for all new applicants is 34.95%.The interest rate is fixed for the term of the loan.
An Establishment Fee of up to $130 is charged for every new loan. This may be discounted for loans under $2000
There is a Monthly Administration Fee of $6.10 per month

The following charges may also apply:

  • Express Payment fee of $5 if the cash is to be advanced within 60 minutes of loan approval
  • Personal Property Securities Registration (PPSR) $16.00
  • Verification of security ownership $4.50
  • Verification security items are freehold $2.40
  • Late or missed loan repayments may result in serious money problems for you. If payments are missed then you may be charged a fee of $10 for each reminder letter, email, phone call or text sent to you.
  • Repossession Warning Notice Fee $10.00
  • Repossession Fees (if needed) are the costs charged by the repossession agent
  • A fee of up to $105.00 is charged for top-ups. This may be discounted for top up amounts less than $800

Privacy of Personal Information
When you contact Acorn Finance, use our website, make a loan application or communicate with us in any way, we collect personal information about you. We strive to protect the privacy of any personal information supplied to us and only use it for the purpose intended.

What happens if you can’t manage your repayments?
If you have trouble repaying your loan, please contact us as soon as possible to work out a payment arrangement. Be aware  that if there is security on your loan, we may repossess this security if you fail to make your payments.

In cases of Unforeseen Hardship we will do our best to:

  • Treat you reasonably if you miss a payment. This might include renegotiating the terms of your loan, if this is possible. We will explore all other repayment options with you.
  • Work with you to find solutions if you are having problems with your money, or suddenly face hardship. This might include referring you to someone who can give you advice about how best to manage your money. This could include a budget advisor or social service provider (such as Work and Income New Zealand).

Here some causes of unforeseen hardship:

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

What happens if you I stop making payments?
If for any reason you miss a payment, contact us immediately so we can arrange a solution that works and you can manage. If you continue to miss payments and fail to contact us, you may be liable for default fees. Each time we send a warning letter, email or text, you may be charged a default fee of $10. If you do not make any payments for 3 months and have not contacted us it is most likely that we will hand over your account to our debt collector.

Payment Default Fee $10.00
A Direct Debit Dishonour Fee of $14.95 payable to Ezidebit if the Direct Debit agent is Ezidebit

How do I make a complaint?
We welcome your feedback. If you are dissatisfied with any part of our service please let us know straight away by phone or email to the Complaints Manager at Acorn Finance. We undertake to investigate all concerns promptly and fairly.
If you are not satisfied with the response from our Complaints Manager, you may then refer the matter to Financial Services Complaints Limited (FSCL) by email to info@fscl.org.nz or phone 0800 347 257. There is no cost to you to use FSCL.
Acorn Finance is a member of FSCL which is an independent dispute resolution scheme approved by the Ministry of Consumer Affairs.

Interest Calculation
Interest is calculated daily by multiplying the unpaid balance of your loan by the Annual Interest Rate divided by 365. Interest is added to your loan balance every seven days for Medium Term Loans and monthly for other loan types

Can I cancel a loan?
Yes, you have the right to cancel you loan for up to 9 working days. If you do cancel your loan, we can charge you for any reasonable expenses that had to be paid in connection with the Credit Contract. We can also charge any interest accrued for the period from the day you received the loan until the day you repaid the balance.
Please refer to the Right to Cancel section in your Credit Contract for full details.

Acorn Finance Loan Renewal Policy
Before you borrow again, you must have repaid at least half the initial unpaid balance of your current loan. Establishment fees of $86 per top up apply.
If you have missed one or more repayments on your loan, your credit limit for future loans may be reduced, or we may decide not to give you any more loans.
If it has been more than 6 months since your last loan, you will need to show us your latest bank statement and confirm your contact details.

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