Home Lending Report fails to address Debt Pushing crisis      

The House Economics Committee on home loan lending has failed to address the problem of debt pushing by the big four Australian banks, choosing instead to target predatory lending practices from fringe lenders. 

FSU Policy Director Rod Masson, representing 55,000 finance workers, welcomed the report but said it had failed to acknowledge that inappropriate sales targets set by the major banks are playing a dangerous role in undermining lending standards.

"The inquiry has been short and sharp, but has not delved into the level of detail required to fix the crisis, in particular it has failed to address inappropriate sales targets for finance workers.

"Bank workers and consumers are looking for more than just a political quick fix on the issue"

"Major banks talk a lot about their sustainable lending, but their pay structure for staff and culture of sales targets forces bank workers to push debt to customers who cannot afford it."

"Finance sector workers are under pressure to sell debt products such as mortgages and credit cards to people who may not need them," said Mr Masson..."


AND MORE - This from 2008 



Bank Workers Call for Regulation of Lending Practices

"Bank and finance company sales targets must be regulated to tackle debt stress and put a lid on spiraling consumer debt, according to a new report into lending practices to be released today by the Finance Sector Union (FSU)....."

Despite increasing interest rates, banks are not passing on any relief to customers by reducing pressures on bank workers to sell credit cards, personal loans or mortgages.”

“Banks and finance companies have failed to regulate themselves, it’s time for the Federal Government to establish a body to regulate the sales culture of the finance industry for the protection of Australian consumers, for the promotion of professional service and to safeguard the industry’s reputation.”

“Self-regulation does not work; debt is a looming national problem and we don’t want to end up with an Australian sub-prime disaster. It is time for a national response,” said Rod Masson.