WA No Interest Loans Network Inc

1. WA No Interest Loans Network Inc Agency Training 2012

2. Today’s Schedule 10:30 Registration 10.45 NILS Training 12:30 Lunch 01.00 NILS Training 3.00 Latest Developments 4:00 Close

3. Who are WANILS? • The WA No Interest Loans Network Inc. (with the commitment of member agencies) aims to provide families and individuals on low incomes across Western Australia with the opportunity to apply for a loan to purchase essential household items, without the burden of interest charges or fees. • At present, WA NILS provides loans between $200 and $1,500 for the purchase of essential household items, predominantly but not exclusively white goods. It is a commercially operated loan scheme with a central administration office, which services applications received from Network Members throughout Western Australia. Network Members are community organisations and welfare groups located state wide, from Wyndam to Esperance.

4. WANILS History • In February 1999, the Minister for Family and Children Services (FCS), the Hon. Rhonda Parker announced the replacement of the Departmental Furniture Assistance Loans Scheme, with a community based No Interest Loans Scheme, and that funding would also be enhanced to establish the new scheme. • In August 1999, the Minister for FCS signed a memorandum of Understanding with Anglicare WA to act as a sponsor of the No Interest Loans Service (NILS) Network from the period August 1999 to 31 December 1999. • NILS operate in some form in every state. Victoria has the largest number of schemes, over 40 and has formed a state NILS network. WA is funded by the Department of Child Protection and the Federal Government.

5. What is NILS? • An interest free loan for low income earners and those financially excluded • Loan amount from $200 - $1500 • Up to two essential household items • No fees, charges or interest • NILS is NOT for • Emergency relief, bond, rent money, living expenses, debt repayment, lay-by or second hand items (except gophers) • Not a grant or short term finance e.g. payday loans

6. Prior to the Interview....

7. First Contact with Client • Geographic eligibility (we then know who to refer client too) • Must have a Pension or Health Care Card • Income eligibility test- Low Income Health Care Card • Intended purchase on list of approved items • Residency for 3 months - private rental • Undischarged bankrupt – Notification of bankruptcy • One loan per household

8. What to bring to interview • WANILS Info pack • What to bring to your interview list • Client information sheet • Loan application & agreement • Budget • Quote forms • Partners are included as joint applicants unless exceptional circumstances • Both partners income and expenditure need to be included • Obtain quotes IMMEDIATELY PRIOR to interview

9. At the Interview....

10. Effective Strategies • Stress privacy and confidentiality of client information • Make client responsible for collection of documents • Avoid multiple interviews • Better documentation minimises queries, complications and reduces approval time.

11. Identification • Pension or Health Care card • Drivers licence • Ensure identification forms are current • Check current address

12. Household Budget • Explain to client the purpose of doing a detailed budget • Discuss each item with client and ensure the budget is realistic and correct • Supporting documents provide some information required • Mandatory for the current debt payments and outstanding balance of debts to be supplied • Raise awareness around cost saving e.g. bank fees

13. Income Centrelink Income Statement Centrelink Rate of Payment letter

14. Centrelink Income Statement • Include: • Previous payments if applicant(s) earn wages • Future payments if applicant(s) does not earn wages • Please read asterisks • $60.00 GHACA (DO NOT INCLUDE)

16. Wages • Recent payslips - four consecutive weeks • Authentic – employer name & ABN • Use NET earnings not GROSS • Reported to Centrelink • If irregular earnings, average the four week period to calculate fortnightly amount

17. Child Support Income • Child Support Assessment and the Centrelink Income Statement show client’s entitlement but are NOT PROOF of receipt

18. Child Support Income • Child Support Payee Transaction Summary • Child Support Payee Payment History • Bank statement showing 3 months regular payments • If paid privately- a dated/signed letter from the other parent stating the regular amount paid, how often and a contact number.

19. Child Support Payee Transaction Summary Child Support Payee Payment History

20. Other Income • Board income is not acceptedunless there are exceptional circumstances • Baby Bonus not included as income • Other income – may be acceptable • Please contact WA NILS before submitting application

21. Centrelink Deductions • Include all deductions in the budget • Explain purpose of Centrepay deductions either in support letter or by note on Centrelink Income Statement • Deduction summary is obtainable from Centrelink online

22. Centrelink DeductionsIncome Management • Treat as a Centrelink deduction • Ensure that spending of managed income is reflected in budget with explanations • Centrelink provides three monthly statement of managed income showing expenditure - client may request copy • Centrelink Income Management Customer Service phone number 13 25 94

23. Accommodation - Homeswest • Homeswest screen dump or recent Statement of Accounts • Ensure fortnightly rent is budgeted - not weekly • Verify current address and rental payments

24. HomesWest Screen Dump

25. Accommodation – Private Rental • Has resided at address for at least 3 month • Current tenancy agreement or other proof • Four weeks of recent dated rental receipts • Verify current address, length of tenancy and rental payments • 3 months wait not required if a long term tenancy agreement was held at prior address – provide proof • Boarders ineligible – as name not on tenancy agreement

26. Accommodation - Homeowner • Mortgage statement showing name, address and monthly repayments • Certificate of Title if no mortgage • Water rates and council rates included in budget • Calculate fortnightly sums from annual rate notices

27. Bank Statements • 3 months recent bank statements required with application for all accounts • Ensure statements are in applicants name and current • Scrutinise bank statements for debits and credits that may impact loan eligibility and capacity to repay e.g. authorised payments, direct debits, loan repayments, insurance, child support payments, Foxtel, Chrisco, wages, credit card payments, hire of white goods, debt collectors, memberships etc, pay day lenders

28. Mandatory supporting documents • Utility bills – electricity, gas and phone • Fortnightly usage= Average Daily Cost multiplied by 14 days • Bank statements, Credit card statements (if applicable) • Medical letter (compulsory for medical equipment)

29. Other supporting documents.. • Mr Rental/ Radio Rental statements • Pawnbrokers/ other loan statements • Chrisco letter

30. Expense Minimums • If the actual costs incurred by a client are higher than the prescribed minimums, then the actual costs should be used

31. Total Income - Total Expenses - Total Repayments = Fortnightly Surplus Accommodation Sub-Total + Utilities Sub-Total + Car Registration and Insurance only + Total Repayments = Total Debt Total Debt / Total Income x 100 = D/I Ratio % Surplus Formula D/I Ratio Formula

32. Budget Eligibility Tests • Surplus and Debt to Income Ratio • Electronic spreadsheet will automatically calculate • Manual formulas in Resource Pack • Debt to Income Ratio and Surplus must be within eligibility guidelines • Debt to Income Ratio must not go over 64% • Budget Surplus- Over $45 for loans under $1000 or over $75 for loans $1000 - $1500 • Budget surplus must not be more than $300

33. Household Budget Overview • Must be realistic when compared to bank statement and other supporting documentation • Revisit expenses that may be exaggerated or underestimated

34. Budget Deficit or Excessive Debt • Interviewer may use discretion and not submit the application • Explain that, if submitted, the application may not be approved by the Loans Committee • Duty of care – refer to financial counsellor if applicable • Suggest they reapply after circumstances have changed or budget/debt issues have been addressed

35. Lending Ethics • Client must have capacity to repay • WA NILS loan should not cause greater financial hardship • NEW POLICY: • Repeated bank overdrafts, dishonoured debt repayments, unpaid utility bills and pre-existing debts, demonstrate in the opinion of the Loans Committee inadequate financial management an application should be declined.

36. Borrower’s Ethics • Client must disclose all relevant information • Dishonesty may equate to fraud • Repayment of loans: • replenishes the money pool • enables future loans to client and others • Money pool has been lent many times over and repaid many times over since 2000

37. Loan Documents • Complete all sections • Ensure details match supporting documents e.g. CRN, length of tenancy • Include partner details • Enter – • total $ amount of preferred quote(s) • fortnightly repayment • To be signed by applicant(s) • Witnessed by agent Loan Application and Agreement form *

38. WANILS Database

40. Quotes • Items must be on approved list- if not- please call to discuss • Air conditioner quote must include installation (if applicable) • Valid for minimum 30 days • Sale items discouraged • $1500 + $50 cash contribution from client, if required • Client chooses preferred quote • Prefer both trader quote & WANILS quote form • Chartered traders

41. Chartered Traders • Joondalup: Fridge and Washer City and Retravision • Warwick: Harvey Norman Electrical • Malaga: The Good Guys • Quotes not accepted from Myers, David Jones, Office Works, K-Mart, Big W, Target, Bunnings, other retailers not accepting EFT or 14 day quotes from Dick Smith and JB HIFI

42. Support Letter • Provide a support letter with all applications • Explain the clients general circumstances • i.e. Family composition, income, housing, budget, purpose for loan, preferred quote, repayment of loan • Explain any exceptional circumstances • e.g. Deviation from policies, deductions, child support income, bank statement transactions, domestic violence, medical

43. Centrepay Form Loan Documents • Complete parts A, B, C, D & G • Please sign and date

44. Checklist Loan Documents • Required for all applications • Read the checklist and ensure checkboxes are completed correctly

45. If documents not all provided... • Will slow or prevent a lending decision • Documents are required to: • provide a clear snapshot of financial position • ensure client is not put into financial hardship • WANILS has contractual obligation to WA Government to obtain all relevant information

46. Conclusion of Interview • Keep a full copy of Loan Application • Post original Loan Application to WANILS • Please DO NOT staple Loan Applications • Explain approval process • may take 4-6 weeks • paid to retailer via EFT • advised via letter • If approved - client keep receipt • Client may want copy of Household Budget • Client should keep WANILS fully informed of: • contact details • repayment difficulties

47. Loans Committee • New members welcome • Meet once every 4-6 weeks • 1-2 hour meetings • 3 members at each meeting (1 member always being the Manager) • Understand the loans process further

48. Appeals • Declined applications may be appealed with reasons • Complete appeal form, submit to WANILS, with supporting documents • Appeal is assessed by another Loans Committee or WANILS Board

49. WANILS Website & Facebook • Our website address is www.wanils.asn.au • Like us on facebook and keep updated • Latest form versions are not yet online (coming soon)

50. WA NILS Contacts • Manager: • Shane Dirou – manager@wanils.asn.au • New Loan Enquiries: • Shirley Davis - reception@wanils.asn.au • Existing Loan Applications: • Michelle Smith: loans@wanils.asn.au • Ashlee Peeters: loans2@wanils.asn.au • Client Support Officer: • Andrea Campbell: support@wanils.asn.au Phone: 9354 7611/Fax: 9354 7633 PO Box 282 WILLETTON 6955