The Federation of Family Budgeting Services backs a recommendation that the repossession of bedding and heaters be banned.
The Law Commission has suggested only goods specified as security in a credit contract should be repossessed, and that these not include essential household items such as bedding, heaters, washing machines, passports and identity documents.
The commission has consulted banks, debt collectors and consumer groups as part of the Government's review of consumer credit law.
Federation of Family Budgeting Services chief executive Raewyn Fox, is impressed by the suggestion.
"We see a lot of families where they lose their children's beds and things like that which causes real hardship and we were very keen for those essential items to be protected."
Ms Fox says she would also like people to be better informed of the consequences before they sign a credit contract.
The owner of National Collections and Investigations, Glenn Wilson, says as a repossession agent, he supports that change and believes most agents would agree with the move.