The Finance Sector Union has today welcomed the release of the Green Paper on the national credit reforms.

Finance Sector Union National Secretary Leon Carter said that while there are positive reforms proposed there remains more to be done to curtail consumer indebtedness and to stop the increasing pressure tactics of sales targets on finance workers to sell credit.

“This Green Paper takes a step closer to Better Banking for Australian consumers,” said Mr Carter

“The Government has listened to the community and sought to increase regulation in certain areas but we believe it is critical to address the links between bank and finance workers’ remuneration and sales targets on credit products. 

“With the levels of debt stress in the community at record highs we need to see the Government focused on greater regulation that focuses financial services on professional services not just sales volumes and we stand ready to work with the Government to achieve this outcome,” Leon Carter said.

The FSU’s Better Banking Charter outlines the core area of reform that requires address as part of the consumer credit act.  Namely, Government regulation to prohibit or significantly limit the extent to which performance can be measured by sales targets linked to selling debt products in the finance sector. (79% of public support and 90% of workers support)

The FSU has also long argued for the banning of unsolicited credit card and credit card limit increase offers.

“The community, our financial sector and our economy would be much better off with the implementation of these reforms to create better banking for everyone,” said Mr Carter.

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Spokesperson:  Leon Carter, National Secretary, 0409 946 597
Media:    Anaya Latter 0432 121 636