Info for Community Groups
Loan repayments
| NILS Info for Community Groups
Loan repayments |
NILS® can offer their clients three options for making loan repayments:
The client receives a book of pre-coded deposits slips from the NILS® Loans Officer. The client makes a deposit each fortnight at a bank branch (e.g. Commonwealth Bank). This is a free service to the client, but depending on the bank used, there may not be a branch in the client's area, so it may be inconvenient for most clients. It also requires active choice by the client each fortnight. Each NILS® needs to negotiate with their Branch Manager to receive the payment books free of charge.
Clients can authorise the NILS® to arrange loan repayments by direct debit from Centrelink each fortnight out of the client’s social security entitlements.
This is extremely convenient for clients. They don’t have to visit a bank and queue. People tend to budget around the cash they have, so they miss the loan repayments less. The repayment system still stays in place if they move house or move to another town.
NIL schemes using this system report a much lower loan default rate.
Certain protections apply. Clients can cancel the direct debit authority at any time. Centrelink will not let direct debit exceed 60% of the entitlement.
Each NILS® needs to sign a Service Agreement with Centrelink's Centrepay in order to start direct debits. The Centrelink contact staff in each state will explain this to you. Let them know that you are a NILS® and if your agency also uses Centrelink direct debit for some other purpose (eg rent payments), open a separate account for your NILS®.
Centrelink contacts for arranging direct debitContact your state or territory Deduction & Confirmation Services Account Manager:
Telephone FreeCALL™ 1800 044 063.
email centrelink.business.support@centrelink.gov.au (this email address is only for organisations interested in using Centrepay).
To access a copy of the Centrepay Contract and Guidelines use the link below:
http://www.centrelink.gov.au/internet/internet.nsf/businesses/deduction_confirmation.htm
Feedback to: convenor@nilsnsw.org.au |
Page last updated: 20 December, 2007 |