Unforeseen hardship

Choose whether you are a Borrower or Lender to learn more about Unforeseen Hardship.

Unforeseen hardship

Choose whether you are a Borrower or Lender to learn more about Unforeseen Hardship.

What to do if you suffer unforeseen hardship

We understand that life can throw a few curve balls from time to time, so if you find yourself unable to reasonably keep up your loan repayments, we call this an Unforeseen Hardship. If you have been affected by an Unforeseen Hardship, you can request that we vary the terms of your loan contract.

An Unforeseen Hardship may be due to personal hardship (e.g. illness or injury), a major life event (e.g. death of a loved one, loss of employment), or another reasonable cause. To apply to have your case reviewed you need to:

  • Make an application in writing (via letter or email) that clearly explains your reasons, with as much supporting documentation as possible that relates to your hardship event.
  • Clearly request one of the following:
    • An extension to the term length of your loan – this will reduce the amount you pay with each repayment, but increase the number of repayments;
    • Postpone some of your repayments for a set time;
    • Or a combination of the two – i.e. extend your term, and get a postponement of some of your repayments.
  • Deliver your application to us (via email or post) before you are in default for two months or more, or before you have missed 4 or more consecutive repayments. (Note: if you have been in default, but remedied the payment, you can still apply for Unforeseen Hardship. You cannot apply for Unforeseen Hardship within four months of a previous application, unless previously arranged with us, or the hardship is related to a different matter).

Once we have received your application, we will contact you in writing outlining the process from there. If we do not require any further information from you, a decision will be made within 20 working days of receiving your application.

You can make an application for Unforeseen Hardship:

Via Email: 
customerservice@harmoney.co.nz

Via Post: 
Unforeseen Hardship 
Level 1
308 Parnell Road
Auckland 1052
New Zealand

What happens when a Borrower applies for Unforeseen Hardship?

If Borrowers find themselves unable to reasonably keep up their loan repayments due to unexpected life event, they can apply for Unforeseen Hardship.

Unforeseen Hardship can happen due to illness or injury, a major life event (e.g. death of a loved one, loss of employment), or another reasonable cause.

Once Harmoney receives an application, and we determine that we have all the information we require, our team will assess the application and make a decision on whether or not to approve the application for  Unforeseen Hardship. If the application is successful one of the following will happen:

  • The Borrower may receive an extension to the term  of their loan – this will reduce the amount they pay with each repayment, but increase the number of repayments;
  • The Borrower may have some of their repayments postponed for a set time; or
  • The Borrower may get a combination of the two – i.e. an extension of the loan  term, and a a postponement of some repayments for a set period of time.

Not all applications will be successful, and there are stringent criteria that a Borrower must fall into in order to have Unforeseen Hardship granted.

Ultimately, it’s important to remember that Borrowers who have their contracts varied,  because of Unforeseen Hardship will still repay their loan in full – it may just take longer than initially expected.