Recovery of payment

Before granting a Recoverable Assistance Payment a repayment plan must be negotiated with the client.

There are a variety of repayment options available to clients (and/or their partners), as listed below:

• payee deductions from Working for Families assistance paid by MSD
• deductions from Student Allowance
• employer deduction notice (a debt management officer at 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

The necessary forms for repayment must be completed and signed by the client before the Recoverable Assistance Payment is issued.

The person whose wage/salary will be repaying the debt must agree to an employer deduction notice.

If a client has a Recoverable Assistance debt balance when applying for a benefit or pension, deductions from the benefit or pension can be made to continue recovery of the Recoverable Assistance Payments.

For more information see:

Recoverable Assistance Payments must have a recovery rate that ensures the amount of the payment is repaid within 24 months after the payment is granted, unless exceptional circumstances exist.

The rate of recovery must be negotiated with the client taking into account their circumstances.

It is important the client knows the length of time the Recoverable Assistance Payment will be repaid over.

When setting the rate of recovery, you need to consider the following factors (where relevant):

• the circumstances of the client and any dependents
• the ability of the client to meet their needs and the needs of any dependents
• the amount of the debt - we want clients to pay off their debt as fast as they can, but always consider the circumstances of the client, and their ability to repay without placing them in undue hardship. If the debt is large, you should consider a higher repayment rate if the client can afford to pay
• the effect the rate of recovery will have on the client's ability to support themselves
• whether the rate of recovery would cause undue hardship to the client and any dependents
• the effect the rate of recovery would have on the client's ability to fulfil their work and social obligations, e.g. ensuring their child is enrolled with a Health Practitioner or enrolled with a medical practice that is part of a Primary Health Organisation if required to do so
• the ability of the client to gain access to further advances and recoverable assistance

If the client does not agree with the rate of repayment you must record why you decided to set it at that rate.

In most cases a Recoverable Assistance Payment needs to be recovered within 24 months.

Clients, who request a reduction of recovery rate that will extend beyond 24 months, will need to be considered against and must meet the exceptional circumstances criteria.