Help provided to change banks

A new website has been set up to help mortgage brokers assist their clients in changing banks and to keep their transactional histories clean.

Tuesday, February 16th 2010, 10:31PM

by Jenha White

Directdebit.co.nz provides users with a one-stop shop for sourcing direct debit forms for everything from banks, insurers and utilities through to gyms and mobile phone companies.

Founder Paul Latham says the website is good for mortgage brokers as it reduces one of the hurdles customers see in changing banks as they don't have to ring around to change all their direct debit payments, making it easier to talk to customers about re-financing.

Mike Pero mortgage broker Frank Zwitser says he is very excited about the website as he also has a background as a banking manager and he knows banks rely on the inconvenience of changing from one bank to another.

He says when mortgage brokers look at helping people get better rates, lending structure or service, the hassle of shifting banks plays on the mind of the customer.

"Now they can go to one place at the Directdebit website and print off the forms for a new direct debit authority or their mortgage broker can work with them to do that.

Latham acknowledges that lenders also have criteria for clients wanting a home loan including a clean transactional history with no dishonesty or over-spending.

"Direct debit is a main cause of people going outside their spending limits and with our alert service those customers who don't take control of their finances can make sure they keep their transactional history clean."

The alert service, alerts customers days before direct debit payments are due to go out of their accounts.

"Consumers can then make sure they have sufficient cash available, or discuss their payment with the company to avoid the payment failing and a dishonor fee being slapped upon them."

Latham says everybody tells you when a direct debit has failed but he wants to help New Zealand consumers stay in control and reduce the incidence of this happening.

Jenha is a TPL staff reporter. jenha@tarawera.co.nz

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