Recovery of payment

Before granting a Bond Grant, MSD must discuss a repayment plan with the client.

There are a variety of repayment options available to a client as listed below:

• deductions from a main benefit, Student Allowance or Working for Families assistance paid by MSD
• employer deduction notice (Client Support - Debt Management will arrange this - case managers do not have the delegation to issue a wage deduction notice)
• automatic payment from client's bank account
• internet/telebanking payment
• payment through New Zealand Post Shop

A Bond Grant must have a recovery rate that means the client will pay back the debt owed within 24 months of the grant unless they have exceptional circumstances.

The rate and method of recovery must be discussed with the client, and be based on their individual circumstances and ability to live within the reduced income.

It is important the client knows the length of time the Bond Grant will be repaid over.

Clients who have already been granted a Bond Grant may have their recovery rate adjusted at a later date if their circumstances change.

When determining the rate of repayment by instalments MSD must consider:

• whether the instalment reductions will leave enough for the client's living expenses and any other debt repayments
• the impact on the individual (and/or their immediate family) when establishing further recoverable debt and
• the likelihood it would cause the client to seek further Housing Support Product payments or other extra help assistance