Firms More Chary Of Giving Credit

Press, Volume CVII, Issue 31440, 5 August 1967, Page 1

Firms More Chary Of Giving Credit

Since the economic curbs began there had been a noticeable increase in the number of retailers and wholesalers checking the credit-worthiness of prospective customers before entering hire-purchase agreements, said the director of the New Zealand National Creditmen’s Association (Mr F. B. Wright) yesterday.

Though repossession bad doubled since the beginning of the credit squeeze, it was still not very serious. “There is no terrific upsurge in repossession,” said Mr Wright “Some of the retail firms in Christchurch would sooner have a person pay off 5s a month than repossess goods arranged to be paiJ off at 5s a week.” His office had been advising firms to show a great deal of leniency. Otherwise people would “toss the things back at them.”

Firms had learned from what had happened in Australia.

“In Australia they were repossessing stuff and getting it back on to their shelves," said Mr Wright “They could not sell it It was almost valueless.”

The State Advances Corporation was showing considerable leniency to tenants of Government bouses and to those paying off housing loans, he said. The corporation had more or less had a directive to show leniency. Repossessions were likely to increase in the next six months if the employment position worsened.

“I think it will worsen about 20 per cent” he said.