Changes to responsible lending laws are not in the public interest and are strongly opposed by the Finance Sector Union (FSU).
FSU National Secretary Julia Angrisano said the union is concerned that proposed changes will lead to a return to the toxic work practices and oppressive work culture uncovered by the Banking Royal Commission.
“Our submission on the draft legislation strongly opposes giving the banks the even more capacity to market and sell debt to members of the community who can’t afford them,” Ms Angrisano said.
“We believe these changes will have a detrimental effect on the morale and health of front-line bank staff whose job it is to sell debt products.”
“We also reject the notion that there are significant barriers to obtaining credit and this view has been confirmed by the chief executives of the CBA and ANZ banks.”
“Bank shares have surged following the Federal Government’s announcement it would water down responsible lending laws.”
“With profits down and more than a year after the Royal Commission the banks are under pressure to increase their profits again. This cannot be off the backs of their staff and vulnerable customers.”
“The FSU believes the impact of these proposed changes on workers will be catastrophic. We will see a return to situations where workers are afraid to go to work, knowing they will be pressured all day to sell credit to people who cannot afford it.”
“This is the revival of the ‘profit at all costs’ culture and it is beyond belief that the sector is heading down this road again. “
“The Australian banking sector has made progress since the Hayne Royal Commission which has been of benefit to our community. These proposed amendments to consumer protection laws put any progress at risk.”
“The FSU supports an ethical, productive finance sector that supports its workers, customers and the community.”
The Finance Sector Union has joined a wide range of community and financial groups which have written to Federal Parliamentarians calling on them to reject changes to Responsible Lending Laws. (See letter below).