15 Aug 2023

'Proxy debt collector': budgeting services call for end to benefit attachment orders

From Nine To Noon, 9:10 am on 15 August 2023
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Budgeting services are calling for an end to attachment orders which take automatic debt repayments from people's benefits.

The Ministry of Justice can impose an order on someone who owes money, for instance unpaid court fines, and deduct this from their weekly payments.

Because it is easier legally to deduct from a benefit than a wage, 80 percent of the orders are on beneficiaries.

Auckland Central Budgeting Consultants says it's adding financial strain on those who can least afford it.

In a statement Minister for Social Development and Employment Carmel Sepuloni says MSD does not have the authority to consider a challenge to a court attachment order.

However staff are instructed to advise clients suffering undue hardship to contact the courts if they want a reassessment.

Financial consultant and mentor Tim Maurice speaks with Susie Ferguson.