DOORSTEP INSTALMENTS

Northern Advocate, 3 May 1933, Page 9

DOORSTEP INSTALMENTS

ST ATM ADVANCES COLLECTION

! : CPNLENIENT TO THE TIMES,

(Special to "Northern Advocate.")

WELLINGTON, This Day,

■ Tlie exceptionally difficult condition df things today throws even the most conservative of institutions into new Methods. Years ago it would have beefi regarded ' as almost laughable that the State Advances Department, with its dignified'method'of debiting clients every half-year, and expecting a cheque in due course, would adopt u house-to-house system of collecting. But the Department', fida[iting itself t'o the needs of many of iU clients, now gives them the ’opportunity of ‘‘paying as you go, ” and will collect its instalments on the doorstep. ■ It is difficult to say how many the Department's ’ 57,000 mortgagors arc house owners and not farmers, but the workers’ dwellings section alone has £15,000,000 out on mortgage, while many of the settlers' branch advances are in respect to urban and suburban bouses. In common with other lending institutions, the department found the arrears piling up.

So last' September the experiment was made in ' Auckland of calling on clients in arreaf, and doing so in accordance with their. capacity-to pay, a fortnightly wage payment being accompanied by a fortnightly visit from d representative of the department. The system wan next extended to Christchurch, then to Wellington, njul is conducted by the officers of the department where it has its own staff. In other places selected land agents make the collections.

Inquiries at the head office produced the opinion that the system has thoroughly justified itself, and that it is not strictly confined to clients in arrear. Many otheis have asked . for I faeilities to pav a little at a Mine,