Lenders push KiwiSaver withdrawals, refer borrowers in trouble to volunteer organisations

CAB chief Kerry Dalton says lenders referring struggling borrowers to non-profits is unjust. (Photo: David Haxton)

Fri, 13 Jun 2025

Citizens Advice Bureau (CAB) says lenders are increasingly referring struggling customers to it for advice on withdrawing KiwiSaver funds, rather than fulfilling their obligations as responsible lenders.The volunteer organisation was seeing a variety of lenders encourage people to apply to withdraw their funds as an easy way to clear debt, even though that’s not what the hardship provision was designed for, CAB deputy chief executive Andrew Hubbard said.Withdrawing KiwiSaver should always be a last resort, he said.“There are some pr...

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