Media Release
Monday 4th October 2010
FSU urges Banks to not raise rates above
official movement
The Finance Sector Union (FSU) today called on banks to recognise and respect the
pressure on mortgage holders and customers by showing caution and not passing on
any more than the Reserve Bank’s expected 0.25% interest rate rise tomorrow.
The FSU said that the hip pockets of Australian families have been extremely hard hit by
the actions of the banks and they couldn’t cope with any moves in excess of the RBA’s
cash rate.
Leon Carter, National Secretary of the Finance Sector Union, said Australian banks had
an obligation to responsible lending practices and to ensure that interest rates are kept
at a sustainable level.
“Many Australians are struggling to manage the large debts that the big banks
consistently promote and sell to them.
“It is clear that many Australians are feeling the burden of debt, the squeeze of rising
interest rates and the major banks need to accept some responsibility for this trend.
“At a time of record bank profits and executive remuneration it is hard to accept
arguments that funding pressures warrant a rate rise,” Leon Carter said.
“Our members are concerned seeing customers struggle, and their employers are
placing higher and higher sales expectations on them – in fact sales of debt products are
one of Key Performance Indicators for many bank workers.
“The Finance Sector Union has argued that this is not a sustainable or valid measure of
work performance and we have been campaigning to decouple selling of credit and
financial products from remuneration outcomes. We have been arguing for Better
Banking and an approach that markets and sells debt responsibly.
“Banks must also ensure that they are exhausting every effort to help people manage
the debts they have been sold.
“Often people who may not be in a position to continue servicing their debts with the
higher rates of interest are in those positions of debt because of the bank’s sales tactics
rather than responsible lending practices” said Mr Carter.
Ends
Spokesperson:
Leon Carter, National Secretary, 0409 946 597
Media:
Leanne Shingles, 0423 821 773
NEWS 
