Bank accounts customers 'offered unnecessary loans'

Monday 06 June 2011

Article by Mozo

Bank accounts holders who contacted a call centre may have found themselves taking out a loan package they did not want after being persuaded to by the operative.

Bank accounts customers 'offered unnecessary loans'

A survey carried out by Financial Sector Union of 3,200 of its banking staff members found that more than half had persuaded a customer to take out a product which they did not need in order to meet the targets that had been set by management.

It was found that many banks are offering members of staff a financial incentive for getting clients to take on more debt, with almost 90 per cent stating they make around a quarter of their earnings from these bonuses.

"The system of performance targets and incentives is completely at odds with the notion of responsible lending and professional service," said union nation secretary Leon Carter.

The news came not long after new figures from the Reserve Bank of Australia showed Aussies increased how much they were saving in the first quarter of the year by 11.5 per cent.  ADNFCR-1761-ID-800569353-ADNFCR

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