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Bank Employees Stand Up Against Debt
Interesting debt news out of Australia this week that I want to draw your attention to. It seems that Australian bank Westpac has an interesting staff revolt on its hands. The employees are standing up and saying it is not right for the bank to force them to sell financial loans and products on a growing population of over indebted Australians.
Bank employees raise a very valid and interesting argument that they are being forced to not act in the best interest of their community and citizens of Australia because they feel that pushing high-risk financial products onto vulnerable customers is not the mark of a good neighbor or citizen with a conscience.
According to press coverage from Australia, all employees want is the right to refuse to push financial products - such as insurance, credit cards and hefty personal loans - on customers who cannot meet their repayments.
"Our members want banks to be profitable but they're increasingly uncomfortable pushing debt in the current climate, where people are struggling to finance loans, even though bank profits are now in the billions.", said a bank employee union representative.
What is most interesting is if bank employees In the US and UK also feel like they are being forced to sell their soul and push unhealthy loans solely for the sake of meeting an internal sales quota set by management.
Do bank employees have a duty to exercise good judgment or are they forced to sell, sell, sell and further drive people deeper into debt just to improve the banks profit by yet another billion? Forget about the message that creditors claim that debtors are losing the stigma to bankruptcy because more and more people go bankrupt. Let's just stop pushing financial products that people either should not have access to and do not need for two years and see how far down the bankruptcy rate goes then.
I wonder if it is fair to equate banking employees that push unhealthy financial products on consumers as being similar to a liquor store employee pushing more booze on those that are already drinking too much or known to be alcoholics. We would find that situation reprehensible and abhorrent but society continues to blame the debtor for financial problems. I say we go after the pushers instead of the addicts.
Certainly an interesting thought.
Sincerely,
Steve Rhode
President
Myvesta Foundation
A Global Social Enterprise
Today's Top Stories:
Don't make us push debt: Westpac staff
The staff at the Australian bank of Westpac wants the right to refuse pushing more financial obligations (such as loans, insurance, credit cards) to customers already suffering to meet their current repayments. A recently retired teller from a local bank commented on the changes arising with 'the need to sell' in banks. Marea O'Keefe explains that when she started working in the Commonwealth Bank 10 years ago they were only expected to promote savings accounts whereas now they are expected to push loans, insurance and extended lines of credit on people already unable to service their debts. This makes one ask, why would a bank want customers to take out more debt when they cannot repay their current debt? Does a bank indeed profit from debt?
Debt can be deadly
Australia's biggest selling daily newspaper, The Herald Sun, has recently published an article about companies aggressively trying to collect debt. Peter Ansell, head of Ansell Lawyers, says there is a good reason for creditors to be proactive. Ansell states, "Companies that demand their money first get paid first. If you're not proactive, chances are you will be put at the bottom of the debtors list". However, collection pressure without reasonable solutions drives people to bankruptcy.
Read all about debt...but avoid Trudeau book
Author, Kevin Trudeau, has released a new book and 30-minute independent talk show-esque infomercial entitled "Debt Cures 'They' Don't Want You to Know About". Trudeau is the same author that claims that the sun does not cause skin cancer but rather sunscreen. The real kicker about this book is that it will cost you $29.95 plus $11.95 shipping and handling. On top of that, if you call in to order the book you are expected to take part in the other goods and services offered, such as, the Debt Cures newsletter, costing $9.95 per month. All in all, if you were so moved by the infomercial and opted to buy all of the other goods and services offered you could be spending up to $250. That's $250 spent on a book filled with information that you could have gotten for free at online not-for-profit sites (ahem, myvesta!) or at your local library. If Kevin Trudeau really cares about people curing their debt he should suggest not buying his book and products and simply putting the $250 towards debt repayments.
Lawmakers review of high debts load of Iowa students
Lawmakers try to determine the reason behind the students of Iowa College having some of the highest debt in the nation. Some feel the reason behind this debt is the result of students taking out loans from the Iowa Student Loan Liquidity Corporation. Ironically, the corporation was created in the 1970s to provide low interest loans to students. However, the CEO of this corporation feels the debt culprit is the fact that average income in Iowa is lower than the rest of the country. Also, factors provoking the debt may be the cost of rising tuition. Robert Shireman, president of the Institute for College Access and Success, claims that 'most students would be better off applying for federal loans that include a fixed interest rate and repayment plan based on income'.
Warning on spiraling debt levels
The Irish League of Credit Unions has publically announced that the personal debt levels in Northern Ireland are spiralling. League president, Uel adair, has called on the executive to put a cap on the amount people can borrow.
One in four 18 to 24 year olds drowning in debt
With 8.2 million (16%) of the adult population in Briton being unable to successfully manage their debts of over £10,000, this makes one wonder, are we setting a trend for the younger population? Debt: it's all the rage in England. Let's take a look, shall we? IVA.co.uk has put out an article showing that 22% of the 18-24 year old demographic are likely to be insolvent by the age of 30. Even more, 1.2 million school-age children (16-18) are expect to fall into the debt trap in the next five years. Experts are planning to take drastic action to help our younger generation avoid debt, starting with 'Schools, Banks and Private enterprises'.
Beware of shady debt help
Would the real debt shady please stand up? This October the Federal Trade Commission (FTC) took out a restraining order against a couple that operated many 'debt-help' schemes with false promises. Websites such as, idebthelp.com, moneycares.com and edgesolutions.com promised clients their debt would be settled in 18 to 30 months time with the "Debt Meltdown Program", paying under 60 cents on every dollar of debt. This scheme was appealing to some, however, those who partook in these sites ended up with a credit report in shambles and actually owing taxes on their debts. In any part of the world debt management companies need to chosen very carefully and with much research. After all, these companies and organisations will be representing you and your finances, don't settle for anything but the best. Yes, anyone can make a promise but not everyone can keep one.
Household debt to normalise in the future
South Africa's Parliament released shocking information that South African debt is 76.6% of income as of June 2007. The National Treasury reported that this ratio of debt to disposable income should be returning to a more sustainable level in the near future.
Jackson could 'lose Neverland' because of debt
Michael Jackson faces debt thriller! The King of Pop has 90 days to repay a $23 million loan (with interest). Jackson is faced with losing his $17 million Neverland Ranch in California. Perhaps he will release an altered version of 'Bad' along the lines of 'you know debt's bad.....' Ok, it was worth a shot.