Australians need to be protected

Banks need to do more to make sure they don’t pull Australians further into debt, the Finance Sector Union (FSU) has insisted.

The group has called upon lenders to make sure that people are capable of repaying personal loans and credit cards before agreeing to provide them with the products.

Rod Masson, policy chief for the group, said that part of the reason that the country is in such a mess moneywise is that consumers have been offered loans they cannot afford to repay.

In such cases, Aussies may have to resort to consolidation loans in an attempt to get back on their feet.

“We are seeing more and more people experiencing severe debt stress coming to us for help from across a very broad section of the community, many of whom have been offered loans they clearly can’t afford,” added Carmel Franklin, director of Care Financial Counselling.

Together, the two groups have drawn up a charter which obliges banks to make sure people can afford to repay debts before offering them cheap credit cards and other loans.

In other recent calls to action, the FSU has urged banks to reduce the number of jobs that are outsourced to other countries.ADNFCR-1761-ID-18817415-ADNFCR