Important information about our loans

1. Purpose and definitions

This information page is provided as a guide to assist our valued customers to 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 thoroughly before deciding to proceed with a loan from us.

The following definitions apply:

“PDL” means PaydayLoan.co.nz, which is a trading division of Cash Burst Ltd operating under the name of Payday Loan.
“This website” means www.paydayloan.co.nz, the website of PDL.
“We” or “us” means PDL.
“You” means you the person accessing this website, applying for a loan or otherwise communicating with us.

2. Types of Loans

We provide short term unsecured loans.
Amounts range from $100 up to $1000.
Repayment terms based on your pay cycle of: up to 6 weekly repayments, or up to 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 net 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.

3. Qualifying Borrowers

  • Subject to our loan approval process, we generally lend to New Zealanders over 18 years old in stable, ongoing full-time employment, earning at least $350 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 $350 a week after tax 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 generally only contact your employer anonymously during the approval process to verify you work there.

4. Interest and Fees

See here for information on cost of borrowing.
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.

5. Loan Purpose and Suitability

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:

  • Car repairs
  • Appliance repairs
  • An urgent dental bill
  • An unexpectedly high power bill

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.
Payday loans are not meant to be used continuously, or as long-term loans. If you find yourself using payday loans on a frequent basis, you should consider using other sources of financing, or else consulting a non-profit credit counsellor.
Some websites you may find helpful are: Sorted, Commerce Commission website, Ministry of Consumer Affairs website, www.cab.org.nz, www.capnz.org.
If you find your monthly bills are often exceeding your monthly income, if credit and collection agencies are calling constantly, or if debt stress is making it difficult to cope with everyday life, these are all signs that debt has become a problem. It is always better to recognize a problem and try to deal with it than to let it build into a larger problem. A credit-counselling agency can help you in this situation. We can help you locate a not-for-profit Credit Counselling Agency near you.

6. Responsible Lending

When choosing a payday lender, it is essential to consider whether the company practises responsible lending and whether you will use the payday loan responsibly.
A payday loan is an unsecured short-term loan. When used for short-term cash needs, a payday loan can be convenient and economical, but it is inappropriate to use for long-term or continuing cash needs.
A payday loan should be used responsibly and for the purpose for which it is intended, namely to solve temporary cash-flow problems by bridging the gap between paydays.
Payday loans are for occasional use only and should not be used to cover continual shortfalls in your budget. If you have ongoing problems meeting your financial needs or debt obligations, you have a couple of options. Take a learning path to budgeting, saving and other important financial education tools.
We have a responsible lending policy in place; please find below some of the criteria we follow when assessing loan applications.

Your employment

  • Your payday loan will not exceed a certain percentage of your regular income. The maximum amount you could be eligible for will always in part depend on the amount of your net income.
  • Your pay must be deposited into a bank account that has been opened for a minimum of 3 months.

Your personal details and current situation

  • We do need to see your ID, bank statements and a proof of address prior to the final approval of your first loan to verify your personal details and also allow us to briefly assess your current short-term financial situation.
  • We reserve the right to do credit checks.

Transparency and trust

  • All fees and charges are crystal clear and are outlined in the Loan Agreement and in the section on this page called “Interest and Fees”. There are no hidden fees.
  • We help Kiwis across the country get through to their next payday – please read the testimonials.
  • We are a Registered Financial Services Provider No. FSP46121.

Responsible borrowing

  • Consider other alternatives prior to applying for a payday loan – such as, for example, borrowing from a family member, friend, colleague, boss or getting a credit card advance. You might also consider obtaining an overdraft, or a line of credit, or consolidating your debt at your bank.
  • Please ensure you can afford the repayments, never borrow more than you know you will be able to pay back on your scheduled repayment date(s). You could use services like Sorted or Family Budgeting for your budgeting needs.
  • Do not use our service for a long-term financial challenge. If you are experiencing financial hardship, seek professional financial advice.
  • Be sure to understand all fees and interest charges associated with the loan. If you do not understand any of the Terms and Conditions of the Loan Agreement, seek independent advice.
  • When considering all loans for approval we rely heavily on the truthful information submitted by prospective borrowers (such as yourself). Where we are unable to verify some or all of the information you provide then we may still be able to approve a loan for you.
  • We expect you to be honest and truthful in all information you provide to us.

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

7. Loan Approval Process

In general, it takes us about 45 minutes to review a new loan application once we receive all the paperwork we need. Subsequent loans 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 only contact your employer anonymously during the approval process to verify that you work there.
Once we have made a lending decision, we will inform you by email and TXT.

8. Information

You will be provided with a copy of your loan agreement and all required disclosures BEFORE you are given a loan.
You should read your loan agreement in full and be sure you understand all the costs and terms of the loan. If you have any questions, ask us promptly. Ensure you receive a copy of each document you have signed. We are a responsible lender and believe in transparency – we will disclose all costs and fees to you, and provide you with a copy of your documents.
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.
If any information/paperwork is missing or when the lending decision has been made, you will be notified by email and TXT.
You can contact our friendly customer service team on 0800 327 822 or service@paydayloan.co.nz with any questions you may have.

9. Subsequent Loan policy

To be eligible for another 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 another loan if you have a balance outstanding on your first loan with us.
In either situation the 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 4 months or more.

10. Cancellation

You have a right to cancel your loan at any time. If you cancel your loan, we can charge you:

  • The amount of any reasonable expenses necessarily incurred by us 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 your Loan Agreement for full details on your right to cancel and your obligations on cancellation.

11. Loan Problems

You should know when the repayments for your payday loan are 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 PDL 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 or seek advice through our contact page here. We are committed to collecting your past due loans in a professional, fair and lawful manner.
Unforeseen hardship may be caused by:

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

Please be aware that your hardship application may be declined if:

  • You have taken out the loan knowing you would not be able to repay it.
  • You were aware at the time you took out the loan, that the event causing your financial hardship may occur.

Further information in regard to situations of financial hardship can be found here.

12. Financial Services Provider and other applicable legislation

Yes, we are a Registered Financial Service Provider no. FSP46121.
We support the New Zealand Government requirement for Financial Service Providers to register with the Registrar of Financial Service Providers 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 PDL 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.

13. 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, PDL 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. PDL is committed to ensuring it acts as a good corporate citizen in full compliance with all applicable laws and regulations.

14. Complaints

Click here for details on complaints and our independent dispute resolution scheme.

15. 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.

16. Contact details

Click here for full contact details

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