Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Maxed out students need a fairer deal from banks

Maxed out students need a fairer deal from banks

Tertiary students and bank staff are calling on banks to rethink their service to students in response to data that shows growing student reliance on credit cards and other bank debt.

The New Zealand Union of Students’ Associations (NZUSA) and bank workers’ union Finsec are joining forces to try and keep students out of high-interest debt. The amount students owe on credit cards has increased by 32% since 2004, according to the NZUSA Income and Expenditure Survey. Credit card debt has increased at a higher rate than low to no interest overdrafts.

“It’s Orientation season and the campuses are crawling with banks trying to attract student accounts,” said Paul Falloon, NZUSA Co-President. “We want banks to value their student customers by easing penalties for default payments and offering no interest overdrafts and loans as last resorts.”

“Balancing the books while studying is hard enough with high fees and so few being able to access a living allowance,” said Falloon. “We want banks to follow the government’s lead and ensure that students aren’t further punished by crippling market interest on their bank debts, especially after graduation.”

Finsec says that the student market is key for the banks and that the banks should adopt an ethical approach to student accounts. This would include low interest, low fee credit card options for students and other low income customers.

“Our Better Banks campaign is about banks offering quality service to customers and communities,” said Finsec Campaigns Director Andrew Campbell. “Better Banks for students will support them through their studies with no-interest packages and not load them up with credit card debt.”

Campbell said banks had an important role in making sure that student credit card debt does not continue to rise at such an alarming rate, and that the banks should investigate the reasons for the recent rise.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>




Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>


Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>


Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>


Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>


Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>


(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>






Featured InfoPages

Opening the Election