Your Big Brother that is. Apparently there are more bad debt in Australia than ever before and the banks and the other financial lenders are saying they could avoid this if they could have more access to our finanical information such as all information about our bank accounts, spending habits in the form of credit card, phone bills and other utility bills where credit checks are required.
As a former user and worker of many financial instititions and having a sister who worked for a doubious credit provider I can say that they make their own beds and should now have to sleep in it.
Over the past decade and a half we have been innundated with the buy now pay later push and the pay later usually entails the need to pay an exhorbidant interest rate, putting people under pressure to pay it back.
Banks don’t supply loans for amounts smaller than $5,000 instead supply credit cards which become continued liabilities that people don’t ever repay.
Banks are also increasing interest rates on home loans outside of the Australian Reserve Bank’s rate changes, to off-set debt incurred overseas from bad investments.
This will start under this “we’re protecting the economy” and turn into a marketing boon for those who have access to the information. When really all they need to do is stop stupid lending.
There are ads running right now on TV from “Motor Finance Wizard” apparently he says “YES” even if your self-employed, no credit before and even if you have bad-credit. There is also Radio Rentals running TV ads for rental agreements, which are credit-based, with “No Credit Checks.”
It’s rediculous that our government continues to legislate to protect business at the detriment of its people. And to tell us that it is no more than they already have in the UK and US is not a reason to do it. Didn’t their mothers ever ask them, “If Toby jumped off the Sydney Harbour Bridge would you do it too?”
See more at Telling banks all about you on The Age’s website.