Minister for Pacific Peoples hears Debtfix ideas to reduce debt and court backlogs

Hon Aupito William Sio, Marja Lubeck (list MP Kaipara ki Mahurangi) and Adrian from Aupito’s office with Debtfix co-founder and director, Christine Liggins.

When Hon Aupito William Sio, Minister for Pacific Peoples and Courts visited the Crew at Debtfix it was acknowledged Pasifika communities need more knowledge about money and debt.

On Friday 27 May, Sio met with Debtfix co-founder and director, Christine Liggins, to discuss two specific actions that could improve outcomes for people overwhelmed by debt.

“We would like a system that stops Pacific people from relying on predatory lenders who take advantage of them in their vulnerable situations when they need money to support family,” Liggins says. “We acknowledge the cultural significance of supporting family in the islands and church tithing, and we also deal with the fallout when New Zealand’s Pacific families resort to high interest lenders.”

Liggins suggests there could be a low or no interest loan structure established, that is different from the current funeral grant available from Work and Income. Debtfix believes Government ministries and agencies need to recognise the pressure Pacific families experience, to send money back to the islands.

Sio wants to empower Pacific peoples and acknowledged financial literacy is not something discussed in their homes.

“When someone gets into trouble with money, they may be ashamed and not want to go to their local budgeting service, where the person could know them and their family,” he says.

Christine requested that as the Minister for Courts, Sio reviews the current system that requires personal insolvency issues to be administrated through the courts.

“Personal insolvency could be dealt with by the social sector,” says Liggins. “This would remove the burden on the High Court, freeing up time, and improve the long-term outcomes for people in debt solutions and the organisations they owe money to.”

Liggins states that during the High Court hearing for a creditors’ proposal, the judge can only comment on the process, which is expensive administration that is not fit for purpose.

“We could develop a personal insolvency advisory system that is written by New Zealanders and works for New Zealanders.”

Liggins will continue discussions with Sio, who was interested in decreasing the burden on the High Court that has a backlog of legal cases.

Debtfix Crew share kai with Hon Aupito William Sio, Minister for Pacific Peoples and Courts and Marja Lubeck, list MP Kaipara ki Mahurangi.