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).

As the Reserve Bank board meets in Melbourne today, the FSU will release a report about the lending practices within banks and the pressures they are placing on staff.

Rod Masson, FSU National Policy Director said the report exposed the hidden world of sales targets, which are increasingly linked to workers’ pay and job security.

According to the report 63 per cent of workers believe targets have a negative impact on customer service while 59 per cent said they had felt pressured to make inappropriate sales of debt to meet targets.

“Our members across the finance sector want to be recognised for providing professional customer service. The pressure they are placed under by their employers to meet sales volumes first undermines their ability to do so.” 

“Bank and finance company sales targets are locked away in secret vaults, with customers unaware that bank workers have to meet targets, including selling of debt products.”

“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.

Click here to download the report ‘Debt Stress, Sales pressure, debt and professional customer service’ or go to www.bankcheck.net.au to find out more about your bank.

ENDS
Spokesperson: Rod Masson, 0408 374 677
Media: Tim Fitzsimmons, 0423 375 522