Complaints about financial institutions rose 60pc in six years, Labor says, repeating call for probe
AM
By political reporter Naomi Woodley
Updated
Photo: Labor has called for a royal commission into the banking sector. (AAP)
The Federal Opposition says complaints about banks and financial services have increased by 60 per cent, while the big four banks have posted multi-billion dollar profits.
Key points:
- More than 31,000 complaints in 2014-15
- Labor using complaints data in case for a royal commission into banking
- Government bill set to include $6.5b in budget cuts
Labor has released research from the Parliamentary Library to bolster its case for a royal commission, as both sides of politics prepare for the new parliament to sit next week.
Between 2008-09 and 2014-15 the number of new complaints to the Financial Services Ombudsman (FSO) went from 19,107 per financial year to 31,895.
"This is one of the reasons why we would argue that we need to have a very systemic look at Australia's banking system and the financial services system more broadly," Shadow Financial Services Minister Katy Gallagher told AM.
The Prime Minister said the Government was considering setting up a banking tribunal to help customers who could not afford court action, as suggested by several Coalition backbenchers.
But Labor said the increased number of complaints to the FSO showed another tribunal would not be enough.
"There is no point in just, in isolation, establishing a tribunal to deal with a few tricky backbenchers that are arguing for change, but at the same time failing to deal with some of the cultural issues that are there for all to see in the banking system more generally," Senator Gallagher said.
"A royal commission would be able to deal with that."
But Labor will not yet confirm if it will move a motion in Parliament next week to call for such an inquiry.
"We will be looking at every measure that we can take in the Parliament and outside to argue for a royal commission because whilst we want a strong, profitable and well-led banking system, we don't want that at any cost," Senator Gallagher said