An analysis of financial complaints data by consumer group CHOICE has revealed Queenslanders have made over 5,900 complaints about credit products since the end of the Banking Royal Commission’s public hearings.
The analysis comes as this week crossbench Senators are set to determine the fate of the Federal Government’s attempt to axe safe lending laws.
“Widespread problems with lending in Queensland led to the Banking Royal Commission but since it ended, Queenslanders continue to be let down by their banks,” says Alan Kirkland, CHOICE CEO.
“The fact we’ve seen over 5,900 lending complaints since the Banking Royal Commission shows that the Federal Government is wrong in trying to repeal safe lending laws,” says Mr Kirkland.
Video interview and overlay with Alan Kirkland available here: https://sites.google.com/
From November 2018 to December 2020, Queenslanders made 5987 complaints to Australian Financial Complaints Authority (AFCA) across consumer loans, credit cards and housing finance. Complaints on credit products can range from irresponsible lending and charging of incorrect fees to poor customer service, fraud, and unfair terms and conditions.
A postcode analysis has found particular hotspots emerging in the Gold Coast, Cairns, Toowoomba, Ipswich and outer suburbs of Brisbane. Coomera and surrounding suburbs (4209) topped the list with 309 lending complaints over the period.
The Federal Government announced the repeal of safe lending laws in 2020. The proposed reform will remove the requirement for banks to undertake basic checks on a person’s ability to repay a loan before approving it. It will also mean banks can no longer be fined for unsafe lending.
In a piece penned last month, Kirkland pointed to the fact it was Queensland MPs and Senators like Pauline Hanson and Malcolm Roberts who made the Banking Royal Commission happen in the first place and it’s now up to them to stand up to the banks.
“Queensland politicians stood up to the banks and their lobbyists to get the Banking Royal Commission. With the Senate about to determine the fate of the government’s plans, crossbench Senators such as those from One Nation will play a critical role in deciding whether Queenslanders are protected from unsafe lending in the future.”
“As Queensland recovers from COVID-19, record rates of mortgage lending are pushing home ownership out of reach of many more people. Scrapping safe lending laws will only make this worse – and leave people without access to compensation when banks do the wrong thing,” says Kirkland.
The Senate is expected to debate the repeal of safe lending protections this week.
.jpg){kind=tracking}
