Latest / Early Edition with Ryan Bridge / Monika Lacey: Centrix COO on the downward trend in the number of people behind on their payments

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Monika Lacey: Centrix COO on the downward trend in the number of people behind on their payments · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Centric data.
• 0:01
  Speaker 2: This is for July month on months shows consumer areas
• 0:04
  Speaker 2: how many are behind on payments falling by nine thousand
• 0:08
  Speaker 2: to four hundred and fifty six thousand. So that's good,
• 0:10
  Speaker 2: but company liquidations are up. Monica Leces, the Centric's chief
• 0:14
  Speaker 2: operating officer.
• 0:15
  Speaker 1: Good morning, Monica mo Ryan.
• 0:18
  Speaker 2: Let's start with the bad news first, the liquidations three
• 0:21
  Speaker 2: hundred and eighty three liquidations for the second quarter.
• 0:23
  Speaker 1: Where are they? What types of companies?
• 0:27
  Speaker 3: Yeah, look, I think businesses have had a really rough rise,
• 0:30
  Speaker 3: you know if you think about COVID and the impacts
• 0:32
  Speaker 3: of that head on them. And then now obviously we're
• 0:35
  Speaker 3: in this recession where consumers are doing the right thing
• 0:38
  Speaker 3: and coming back spending, which we're seeing the results of
• 0:41
  Speaker 3: the consumer areas front. But what that does mean is
• 0:44
  Speaker 3: that businesses are impacted because people just aren't out there
• 0:47
  Speaker 3: spending money like they would have been otherwise. So naturally
• 0:51
  Speaker 3: we're seeing a larger number of these liquidations fall in
• 0:54
  Speaker 3: the Auckland region because of course that's our biggest business
• 0:58
  Speaker 3: sector in the country, and it's impacting the traditional market
• 1:02
  Speaker 3: seed expects, so construction, hospitality, and retail.
• 1:06
  Speaker 1: Okay, so that's the bad news.
• 1:08
  Speaker 2: The liquidations going out, But what about the consumers getting
• 1:12
  Speaker 2: on top of their debt? But you know, is that
• 1:13
  Speaker 2: significant the drop of nine thousand to four hundred and
• 1:16
  Speaker 2: fifty six thousand.
• 1:19
  Speaker 3: We have seen some volatility this year from months to months,
• 1:22
  Speaker 3: but the really pleasing news is that the overall trend
• 1:25
  Speaker 3: is trending down. So I think that that's really positive.
• 1:29
  Speaker 3: I mean, we're talking about four hundred and fifty six
• 1:33
  Speaker 3: thousand New Zealanders in some state of areas, and eighty
• 1:38
  Speaker 3: two of the eighty two thousand are in the linquency,
• 1:41
  Speaker 3: so ninety days or more overdue. So it's quite a
• 1:45
  Speaker 3: low number by comparison to the population. So overall New
• 1:48
  Speaker 3: Zealanders are doing a quite a good job of managing
• 1:51
  Speaker 3: the financial position.
• 1:52
  Speaker 2: What do you read into the five percent increase in
• 1:55
  Speaker 2: credit card applications for July? What does that tell us?
• 1:57
  Speaker 2: Are people poised to I don't know, get it new
• 2:00
  Speaker 2: couch or is it for basic things to fix a car?
• 2:02
  Speaker 2: What's the general vibe there?
• 2:05
  Speaker 3: I don't really have that's behind what is ending that on?
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  Speaker 3: But I can tell you that the Responsible Lending Code
• 2:12
  Speaker 3: that directs lenders on how they should be assessing individuals
• 2:16
  Speaker 3: applies protections to consumers. That gives us some comfort that
• 2:20
  Speaker 3: you know they can actually afford to pate that back,
• 2:22
  Speaker 3: so I think they'll be okay.
• 2:24
  Speaker 1: Monica. Thank you.
• 2:25
  Speaker 2: That's Monica Lacey, the Centric's chief operating officer.
• 2:28
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