The Finance Sector Union today renewed calls for banking regulation as ING Direct’s new quarterly Financial Wellbeing Index showed that Australian households are under increasing pressure to get personal debt under control.

Banks actively engage in marketing and sales strategies that pressure their workers to promote credit cards, lines of credit and other debt products to customers.

FSU National Secretary, Leon Carter said that balance between the public interest and banks’ pursuit of profits must be redressed.

“The fact that banks engage in debt-pushing practices at such a significant rate, on top of exceeding RBA interest rate rises, charging interest upon interest and fee gouging are all practices that impact severely on Australian households and personal debt levels.

“The ING Direct’s Quarterly Financial Wellbeing Index shows that savings are depleted by the need to repay debt, with 31 per cent of households ‘very uncomfortable’ about their personal savings,” Mr Carter said.

“If banks continue to engage in debt-pushing practices, customers will continue to struggle to gain financial security, and the workers will continue to be put under undue pressure to push these products.

“Government has a responsibility to regulate banks that are engaging in practices that see Australian debt levels skyrocketing.

“That’s why the FSU is calling on both political parties to commit to its Better Banking Charter which seeks regulation of:
- Off-shoring of bank jobs where sensitive personal data is handled
- use of debt sales targets as a performance measure
- interest rate movements outside Reserve Bank parameters
- control of short-term measures for bonuses for senior executives
- and tighter controls of bank fees.

“The power of our banks touch the lives of every Australian – but only with proper regulation can banks balance public interest with profits,” said Mr Carter.

More information on the charter is available at www.better-banking.org
Spokesperson:        Leon Carter, 0409 946 597
Media:                    Anaya Latter, 0432 121 636

Responsible lending habits and practices is the right thing to do.  Not simply throw buckets of money at people, some of which they know full well, will have trouble paying it back.

Christ if Labor signs up to this it will have every crooked profiteering bastard in the country campaigning afgainst them, they already have the Mining Billionaires bankrolling anti-Labor ads, and the Tobacco companies have added their blood money to the Coalitions' aid, so if the banks get on the bandwagon they will have no hope.

They will just have to use the approach the Libs use on the general public, lie through your teeth and pretend you had a new idea after you are elected.

Personal responsibility when it comes to borrowing money goes a long way.