Retail banks offering teachers and school staff affected by payroll debacle interest-free overdrafts from now until January 15

The New Zealand Bankers' Association (NZBA) says banks are offering interest-free overdrafts to teachers and school staff whose pay has been affected by Novopay payroll system issues, between now and January 15.

NZBA chief executive Kirk Hope said the problem was affecting the largest single payroll in the country. Banks participating in the offer are ANZ, ASB, BNZ, the Co-operative Bank, Kiwibank, SBS Bank, TSB Bank, and Westpac.

"To take advantage of the offer affected teachers and school staff who are customers of participating banks should provide evidence to their bank, for example a letter from their school, saying they have missed payroll payments and detailing how much they are owed," Hope said.

"Their bank will then arrange an interest-free overdraft facility on the account to which their salary is paid, or another account by arrangement."

He said the interest-free overdrafts were valid until January 15 and limited to the value of the total amount of payments delayed.

“I encourage affected school staff to get in touch with their bank so they know they’re covered and can have some peace of mind over the holidays,” Hope added.