Banks are ‘pushing debt’ onto working families

Banks are ‘pushing debt’ onto working families: unions call for cuts to lending targets

Unions call on the banks and other lenders to immediately cut the loan and credit sales targets that are imposed on bank workers and to review lending practices in the banking and finance industry.

The ABC 4 Corners program on Monday night reported that the debt crisis facing working families is being compounded by the banks imposing sales targets on staff to 'upsell loans' and 'push debt' including to people who cannot afford to meet their repayments.

A report by the union representing bank workers (the Finance Sector Union) has also exposed the widespread use of sales targets which are linked by banks to employees' pay and job security.

The union finds that 59 per cent of bank workers said they had felt pressured to make inappropriate sales of loans and debt products to meet targets.

Reports that banks and other major lending institutions have been penalising staff who refuse to take part in what would seem to be unethical lending practices are also alarming say unions.

"No wonder everyone is living off their credit card -- the banks have been forcing their staff to meet sales targets of the things or risk cuts to their pay.

"The wages of banking staff should not be tied to the meeting of unrealistic sales targets of loans and credit cards.

"Especially in the current climate of rising interest rates there is a risk that more and more working families will be pushed into levels of debt they simply cannot afford.

"There are already record levels of families being forced to sell their homes because they are unable to meet loan repayments.

"This is a major problem that the banks and other lenders need to urgent address," said Ms Burrow.