Important information for borrowers from The Little Loan Shop

It is important you read and understand everything in this document before you apply or take out a loan with The Little Loan Shop. We have tried to provide all the information you need make the right decision about taking out a loan with us. This document is to help you and is not a loan part of any agreement.

Any documents or loan agreement sent to you for your approval and signature must be read and understood before deciding to accept a loan from us. Don’t sign anything if have any reservations, instead seek independent advice first. Similarly, read and understand the contents of the loan application section of The Little Loan Shop website including the contents of the Privacy Waiver and Consent form and the Example of a Credit Contract.

We are The Little Loan Shop which is a trading name of Acorn Finance 2012 Limited. We are a New Zealand Registered Financial Service Provider no. FSP246365.  Our website is www.thelittleloanshop.co.nz.

Our Services and business
The Little Loan Shop lends up to $600 as short term cash loans with a maximum term of 42 days
However, not every applicant can borrow this amount – it depends on your income and expenses.
The maximum repayment schedules are 6 weeks for borrowers paid weekly, 3 fortnights if you’re paid fortnightly, or one payment for borrowers paid monthly. If you want to repay your loan early there is no extra cost. You just pay the principal, any default fees and interest charged up till the time you pay in full, reduced by any payments so far.

From time to time, the maximum amount you can borrow is reviewed. It may increase or decrease depending on your circumstances.

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Should you take out a Short Term Cash Loan?
Some things you should consider are before taking out a loan with us are:-

  • The Little Loan Shop loans are for a short term use only. Don’t take one out if you need to borrow money for more than a few weeks. We intend our loans be used to help cover urgent costs such as car repairs, dental or doctor emergencies, and other such bills.
  • Don’t use payday loans or short term cash loans for non-essentials such as holidays, new cars, new fashion accessories etc.
  • Note that you must start paying off your loan on your next pay day. We direct debit the agreed repayment amount from your bank account on this day.
  • 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

 If you consider this loan option is not for you, do not sign the loan agreement

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 Credit Contract and Disclosure Statement to sign which includes the rights and responsibilities for both you and us. That Credit Contract includes the repayment amounts, terms, conditions, interest rates and fees. And it also includes the obligations that come with having a loan, and the results of not repaying it. As well as extra collection fees as referred to in the credit contract the results of not repaying the loan are likely to include a bad credit rating.

You can see an example of a Credit Contract or using the link at the bottom of our website.

 Lending Policy and Guidelines
The Little Loan Shop operates aims to be a responsible lender.  We intend to act with integrity in all situations, treat all clients and loan applicants fairly and operate justly and within the law. We have a legal obligation to make sure the loan is right for you and that you can afford the repayments without any financial hardship.
To that end we only lend to people we believe can afford to make the repayments. They also must be New Zealand citizens over the age of 18 years. We don’t lend people who are bankrupt, in No Asset Procedures or in a Summary Instalment Order. Credit checks are done on all new customers and a minimum after tax income of $450 per week is required.
We need to work out if you are able to repay a loan. We might decide not to give you a loan if we believe that:

  • you would not be able to repay a loan
  • you would find it extremely hard to repay a loan
  • The type of loan you have asked for will not meet your needs or goals.

In the end, it’s your decision if you can afford to make the repayments based on your personal situation. If you are concerned in any way make sure you seek independent advice. Lending from family or friends may be a better option.
Some of the places to get advice include:

You can find more information in the in our Lending Policy and Guidelines on our website.

What are the costs of loans with The Little Loan Shop?

  • Our interest rate is 0.135% per day which is an Annual Interest Rate of 49.5%. The interest rate is fixed for the term of the loan
  • An establishment fee of $86.00 is applied to each loan. This amount may be discounted for loans under $400. The minimum amount is $55.00
  • An Account Administration Fee of $6.10 is applied to your loan every month, starting when the loan opens. The minimum Account Administration Fee is $6.10
  • If you want your cash paid into your bank account within 60 minutes after we approve your application, an Express Payment Fee of $5.00 also applies.

Please refer to the Loan Costs section of the website for more information and use the Loan Calculator to see how much a loan will cost.

The Little Loan Shop Renewal Policy

  • Before we give you another loan, your previous loan must be fully paid. We do not usually offer top up type loans.
  • If you have missed payments the credit limit for future loans may be reviewed. We may also decide not to give you another loan.
  • If it is 6 months or more since your last loan, we usually require bank statements, proof of address and pay slips to be updated with the latest information.

 

What happens if I stop making payments?

If for any reason you miss a payment, ring us immediately so we can arrange a solution that you can manage. You may be charged a Default Payment Fee of $10 each time you miss a payment or a payment is reversed by your bank. However, if you need to alter the amount of your payment or skip a payment completely you should contact us before midday on the day your payment is due. We can change your direct debit schedule at no charge to you, however, extending your loan means you will pay more interest than originally stated because interest is charged daily.

If your direct debit payment dishonours, an additional Ezidebit administration fee of $14.95 will be charged where applicable. This fee will be deducted from your bank account approximately one week after the dishonoured payment.

If you miss any payments you will be charged Default Interest at the rate of 30% per annum on the overdue portion of your loan for as long as you have an overdue amount. Default interest is extra to the standard 49.5% per annum daily interest charged on the unpaid balance of your loan.

Can I cancel the loan?
You have a right to cancel your loan within 7 working days. If you cancel you loan, we can charge you:

After 45 days overdue the loan may be referred to a collection agency who will charge additional debt collections fees, plus legal costs incurred in collecting any overdue amounts. The law says that you cannot be unduly harassed or threatened for repayments. If you think you are being unduly harassed or threatened, please contact the Commerce Commission

  • 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.

Please refer to the ‘Statement of Right to Cancel’ on your Loan Agreement for full details on your right to cancel and your obligations on cancellation.

Privacy of Personal Information
When you deal with The Little Loan Shop, 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.  For more information see the Privacy of Personal Information Policy on this website.

What happens if you can’t manage your repayments?
If you have trouble repaying your loan, please contact us as soon as possible. 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) if you ask us to.

 Here some causes of unforeseen hardship:

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

Note that financial hardship cannot be claimed under any of the following circumstances:

  • You have failed to make 4 consecutive payment on or before the due date, or
  • your loan is more than 2 months in default

We are committed to collecting your past due loans in a caring, compassionate, fair and lawful manner. Further information in regard to situations of financial hardship can be found here on our website under Frequently Asked Questions

How do I make a complaint?
We welcome your feedback and if you are dissatisfied in any way, we are anxious to learn about your concern and then strive to remedy the situation
If you have any issues, concerns or complaint please call or email us – we want you to be completely satisfied with our service.  However if this initial attempt to resolve the matter has failed, please write or email the manager at THE LITTLE LOAN SHOP.(See contact details below). 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 This email address is being protected from spambots. You need JavaScript enabled to view it. or calling on 0800 347 257.
Note that FSCL does not deal with complaints about fees or interest rates unless they are not the same as in your loan agreement. There is no cost to you to use the services of FSCL.

Hours of business

We process new loan applications during business hours Monday to Friday 9am to 4:30pm.

The Little Loan Shop Contact details
Phone 09 419 8990
Fax (09) 419 8924
Email This email address is being protected from spambots. You need JavaScript enabled to view it.
Mailing address PO Box 34 673 Birkenhead, Auckland 0746, New Zealand
Physical address 52C Mokoia Road, Birkenhead, 0626, New Zealand
The Little Loan Shop is a trading division of Acorn Finance 2012 Limited and is New Zealand Registered Financial Service Provider no. FSP246365

 
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