A lender must consider a hardship application, but it is not required to agree to change the contract. The lender must provide you with the reasons for declining your application.
You can request a review of a declinature through your lender’s internal complaints process. If you are unhappy with the complaint response, you can ask the IFSO Scheme to investigate your complaint, for free.
You also have the right to apply to the courts to change the terms of your loan contract.
If you would like the support of a financial mentor to help understand your circumstances, you may wish to contact Moneytalks. Moneytalks is a free service that supports people and whānau to manage their money and obtain the financial support they need.