Fill in the [brackets]
Subject: Hardship application - loan [account number]
Dear [Lender] Hardship Team, I am applying for hardship assistance for loan [account number] ([car / personal loan]). I lost my job through redundancy on [date]. My income is now $[amount] a [week/fortnight], and essential costs are $[amount]. My current repayment is $[amount]. I am asking for: - A reduction in repayments to $[amount] for [X] months [or a payment holiday of [X] months]. - An extension of the loan term, with the extra interest fixed or waived where possible. - No default fees, and no repossession or enforcement action while this is considered. I need my [car] to [get to work / do job interviews / take children to school]. I am happy to provide proof of income and expenses. Please confirm receipt in writing and let me know what other information you need. Kind regards, [Your name] [Phone, email]
Tips
- While a hardship application is undecided, a lender generally cannot start enforcement steps. Make sure it is clearly marked as a hardship application.
- If the car is essential for work, say so. Voluntarily handing it back is often worse than negotiating.
- If the loan is from a finance company, check that they are a registered financial service provider and a member of a dispute resolution scheme. If not, contact Commerce Commission or CAB.
- Ask for the new balance, term and total cost in writing before you agree.
- Free help: MoneyTalks 0800 345 123, budgeting services, Community Law.
General information, not legal advice. Keep a copy of everything you send. Spotted something out of date? Email help@unemployed.nz.