Summary of Payment Protect and Loan contract changes as of 17 June 2019
Harmoney has recently completed an exercise to extend its peer-to-peer licence to the broader business. As part of this, we have reviewed and made changes to the borrower documents.
In reviewing the documents, we've worked to make the language clearer and the information more concise for customers.
Loan contract changes
- There are now two different versions of the Harmoney loan contract. One version will be sent to borrowers who have not taken out the Payment Protect Repayment waiver, and one for borrowers who have taken out Payment Protect.
- For borrowers who have taken out Payment Protect, the terms of the repayment waiver product will now be included in the loan contract. Borrowers will no longer receive a separate document with Payment Protect terms.
- The content of both loan contracts is identical, aside from the addition of Payment Protect terms for Payment Protect customers.
- Some information, not impacting individual borrower loan terms, has been removed from the loan contract and is now available on the Harmoney website on the Borrower FAQ page.
- Borrowers with questions about their loan can refer to Borrower FAQ in the first instance.
Payment Protect changes
- Payment Protect terms are no longer in a separate document. They are now included in the loan contract for borrowers who choose to add Payment Protect to their loan.
- For all events except death, Payment Protect customers are required to notify Harmoney of the event within 60 days of the event occurring. There is no minimum notification period for death.
- Waiver applications and supporting documents for all events must be provided within 30 days of notifying Harmoney of the event. So in all events except death (see above) borrowers have 60 days to notify Harmoney, and then another 30 days to supply documentation.
- In regards to the disability waiver, cases of accidental injury are exempt from the 30-day stand down period, from the date the Payment Protect loan was entered into.
- The definition of "accidental Injury" has been amended to reflect the definition used in ACC legislation.
- The “At a glance” table has been removed and is now available on the Payment Protect page of www.harmoney.co.nz
- Pregnancy and related conditions are no longer excluded from Payment Protect waiver cover.
- Payment Protect now includes a statement that for events, directly or indirectly caused by an exclusion, each individual circumstance situation will be given fair and appropriate consideration.
- Redundancy waiver cover now extends to voluntary redundancy.
- Some information, not impacting individual borrower Payment Protect terms, has been removed from the loan contract and is now available on the Harmoney website on the Payment Protect page of the Harmoney website.
- Details about Payment Protect and how it works for borrowers are now available to the Payment Protect page of the Harmoney website.
The key changes are outlined below:
- the kind of information we collect
- who we collect it from
- how we use it
- who we disclose it to
Customer Service Terms
- If any changes need to be made to the Customer Service Terms at a later date, you will be notified via email.
- Harmoney’s Electronic Communication Terms are now included in the Customer Service Terms. Under these terms you agree that Harmoney will:
- Send all notices, documents, and communications by email.
- Send your Loan Disclosure Statement by email
You are also agreeing that both parties enter into the documents electronically, with no signatures required.
In combining previous legal documents into your Customer Service Terms, Harmoney has worked to make our language clearer and more concise for customers.