Media Release
 
Bank workers have welcomed the Government’s $71 million plan for increased regulation in the lending sector, and called for an immediate review of the impact of incentives on responsible lending.
 
The Finance Sector Union said the National Consumer Credit plan is a clear signal that, at a time of crisis in global finance, the Government is stepping in to provide greater confidence and professionalism in the Australian finance sector. The union has been campaigning for a Charter of Responsible Lending to protect Australians from the lending excesses that have caused the global economic meltdown.
 
Rod Masson, FSU National Policy Director, said the Government has listened to the voice of thousands of bank workers who have been calling for Government intervention.
 
The plan gives consumers a new level of protection by making it a requirement of lenders to lend responsibly.
 
“To make responsible lending a reality, banks should end the sales target culture. Sales targets for workers in the finance industry need to be ring fenced to stop the short term, bonus-led culture of the sector.
 
“Customers have a right to know of any remuneration outcomes including commissions, bonuses, or incentives behind the sales of any financial product.
 
“If the Government is serious about restoring confidence in the banking sector, there should be an immediate review of the impact of incentives on responsible lending,” said Mr Masson
 
“The failures of Wall Street has shown us that Governments need to hold banks and financial institutions in check.

“This Government has acknowledged there is a need for stronger regulation with our banks and financial institutions and have stepped up to the plate to tackle it.
 
“The plan is a good first step towards restoring our sector’s reputation and providing the opportunity to go further to eradicate poor practices,” said Mr Masson.

ENDS
 
Spokesperson:                        Rod Masson, 0408 374 677
Media:                                    Keiller MacDuff, 0432 828 006