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AUSTRALIAN BANKERS’ ASSOCIATION SAYS THERE IS NO DISCRIMINATION ON LENDING FOR CASUAL WORKERS
Sydney, 2 August, 2004: The Australian Bankers’ Association (ABA) says banks do not discriminate between loan applicants on the basis of employment status. Banks lend to permanent and casual employees, as do other loan providers such as mortgage originators.
The ABA is responding to comments today by the ACTU President who was launching a report on casual employment called ‘Only a Casual’.
David Bell, Chief Executive of the ABA, said: “What is essential is the capacity of a borrower to repay the loan according to the contract terms. Both permanent and casual employed loan applicants will be refused housing credit if they cannot demonstrate a capacity to meet the obligations.”
“As responsible lenders and consistent with legislative requirements (i.e. Uniform Consumer Credit Code), banks must ensure they consider sufficient financial information to satisfy themselves that a borrower will be able to repay the credit provided, irrespective of whether the loan applicant is employed on a permanent or casual basis or has another income source.”
“To assist in the assessment process, most banks use sophisticated credit scoring models with the precise nature of these models likely to differ between institutions.”
For further information:
Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
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