The Finance Sector Union (FSU) is calling on the Federal Government to regulate the whole credit industry, amid reports of growing pressure to sell loans in a climate of rising interest rates.
The FSU says it is shocked by its survey which found nearly 60 per cent of finance and bank workers felt pressured to lend people money they could not afford to pay back.
The Union report also reveals more than 60 per cent of workers believe their sales targets have a negative impact on customer service.
FSU policy director Rod Masson says the figures are shocking and he is calling on the Government to tackle some of the drivers of the behaviour such as reliance on sales targets.
"I don't think that anyone in Australia wants to see us go down the US sub prime-type process," he said.
"There is a role for Government to play in ensuring the soundness and sustainability of the credit and finance industry."
"Clearly we see more and more evidence of staff being pressured."
ABC's Four Corners program has also uncovered a spate of cases where loans were granted to refugees on welfare payments who could not afford them.
But Federal Treasurer Wayne Swan says he does not believe there it is a widespread problem in Australia.
Mr Swan has told Lateline if the problem was widespread he would be disturbed but he does not think that is the case.
"There are some terrible stories, some harrowing stories of individuals who have obviously borrowed in circumstances which are less than ideal," he said.
"But I stress, irrespective of those individual examples, we as a country do not have the same level of problem that has emerged in the United States through the sub-prime crisis."
The Government is pushing ahead with plans for national regulation of mortgage lending.
Source: By Australian Broadcasting Corporation
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