Direct debit terms and conditions

Regular payments and method

1. ACC will usually only accept an instalment plan if paid via direct debit. Other methods, such as automatic or manual payments, are accepted at ACC’s discretion. 
2. By agreeing to pay by direct debit, you agree for the terms of payment to be overseen and operated by ACC’s automated software which will:   
   • Issue a payment schedule based on the Payment Details supplied
   • Maintain this schedule, issuing any relevant fees, interest and direct debit requests 
3. If a payment would be scheduled on a non-business day, it will be moved to the next business day. Unless it is the last business day of the month, then it will move to an earlier business day.   
4. In the event you require an adjustment to your instalment plan or wish to supplement a payment with a manual payment, it is important that you contact ACC for assistance. ACC may agree to adjustments to the schedule and non-standard payments at its own discretion.  
5. Due to technical limitations, ACC cannot guarantee a replacement schedule will be issued for minor adjustments such as, but not limited to, shifting of dates for individual payments, unexpected manual payments, or distributions of credit notes.  
6. Future invoices will be issued with the payment schedule (if any) included as part of the invoice. It is important you review and advise ACC of any concerns or requests to amend the way that you pay your levies.  
7. It is important that you contact ACC at least three business days in advance of any requested changes in order to ensure there is sufficient time to allow all the systems involved to update accordingly.  
   

   Instalment interest 

8. By choosing to pay your levy in instalments, your instalment interest payable will be calculated using the below formula. 
   
   Levy invoice amount x [((instalment base rate + 2.5) ÷ 12) ÷ 2] x number of months in the instalment period. 
   
   This will be added to your payments as set out in your instalment schedule. 
9. Instalment interest is charged under section 234 of the Accident Compensation Act 2001 (the Act). 
10. The instalment base rate is determined using the monthly floating first mortgage new customer housing rate most recently reported by the Reserve Bank of New Zealand in their regular retail interest rates as at 1 April in the tax year in which the instalment plan is entered, and that rate applies for the full duration of the instalment plan. For the current rate, visit How we apply interest on levies.  
11. Changing the length of an instalment plan will recalculate the remaining instalments, including instalment interest amounts. 
    

    CoverPlus Extra

12. If you are a CoverPlus Extra policy holder, and do not pay by the date required under your planned agreement, your policy and the planned agreement will be terminated. You will then receive ACC’s standard cover policy and be required to pay levies for the period that the standard cover applies.
    

    Missed payments and late payment interest

13. If any payments are not paid to ACC on the due date, ACC may cancel the instalment plan at any time, and you will be liable to pay the remaining balance of the levy and any instalment interest already applied.
14. For any balance that is not paid by the due date, including unpaid levy, unpaid instalments, or unpaid interest, you become liable for late payment interest. This interest is calculated daily and compounded monthly in accordance with section 250 of the Act. 
15. The monthly rate of late payment interest is charged using the below formula.
    
    [(late payment base rate + 2.5) ÷ 12] +1
    
16. The late payment base rate is determined using the monthly floating first mortgage new customer housing rate most recently reported by the Reserve Bank of New Zealand in their regular retail interest rates as at 1 April in the tax year in which the interest accrues. For the current rate, visit How we apply interest on levies. 
    
17. If ACC incurs any costs (such as internal and external costs and/or legal fees) in recovering money you owe or in enforcing its rights under this agreement, you must pay these on demand.
    

    Future levy payments 

18. ACC will use the information you have provided to automatically roll your plan over in the next levy year unless you advise us otherwise. It is also important to note that any future ACC polices will be set up for full payment on the due date.  
19. To cancel an instalment plan for a future invoice, follow the steps on your invoice. 
    

    Information collection

20. ACC collects personal information to administer your levy account and to manage levies payable. If an amount remains unpaid, ACC may use your information for debt collection purposes and may share your information with employees or external agencies for those purposes. 

21. You have the right to access and request correction of personal information that ACC holds about you. 

22. The information provided on this form will only be used and disclosed for lawful purposes connected with our functions and activities under the Accident Compensation Act 2001. At all times, ACC will comply with the Privacy Act 2020, the Health Information Privacy Code 2020, and the Official Information Act 1982. Further details of how and why we collect, use, store and disclose information are set out in our Personal Information and Privacy Policy, which may be viewed on our Privacy disclaimer.

Conditions of the Direct Debit Authority

Specific conditions relating to notices and disputes

You may ask your bank to reverse a direct debit up to 120 calendar days if: 

• You don't receive a written notice of the amount and date of each direct debit from the initiator, or 
• You receive a written notice but the amount or the date of debiting is different from the amount or the date specified on the invoice. 

The initiator is required to give a written notice of the amount and date of each direct debit in a series of direct debits no less than 10 calendar days before the date of the first direct debit in the series. The notice is to include: 

• The dates of the debits, and 
• The amount of each direct debit. 

If the initiator proposes to change an amount or date of a direct debit specified in the notice, the initiator is required to give you notice no less than 30 calendar days before the change. 

For direct debits with notice no later than the date of the debit, the initiator may only send a direct debit if you have: 

• Asked the initiator to send it, and 
• Agreed the amount of the direct debit. 

For customer-initiated payments, the initiator is required to give you a written notice of the amount and date of each direct debit no less than the date of the debit.