Banks reward workers for selling debt
March 18, 2007
Finsec, the bank workers' union, is calling on banks to change their pay systems so that bank workers are not encouraged to sell credit card debt to customers.
Finsec is responding to reports of a 22% increase in bankruptcies in the last year fuelled by an increase in use of credit cards.
Some banks have pay systems that require staff to sell a specified number of credit cards as part of their performance targets to get a pay increase.
"Bank workers want to be rewarded for good service, rather than for selling ever increasing levels of debt to New Zealanders. They are seeking the removal of debt targets, including credit card targets, from their pay systems so that they can focus on offering the best possible service to customers," said Andrew Campbell, Finsec Campaigns Director.
"The reward to staff for selling a credit card is normally much higher than other banking products. For example at Westpac the sale of a credit card attracts 25 points but a general insurance sale attracts only 5 points," said Campbell.
"It is time banks acted in the economic and social interests of their customers and the New Zealand economy by removing the pressure on bank staff to push credit cards," said Campbell.
Finsec is running an industry campaign called Better Banks that is seeking the removal of sales targets from bank pay systems and replacing them with reward for demonstration of skills and competencies.
ENDS
