With a growing number of small businesses being squeezed out by lenders, credit unions and mutual building societies have launched Australia’s first code of practice to commit to fair, responsible and ethical lending practices.
The new Mutual Banking Code of Practice has been developed by industry body Abacus – Australian Mutuals. Under the code, credit unions and mutual building societies make a clear commitment to responsible lending – well ahead of the proposed federal credit legislation and well ahead of any commitments being considered by other lenders.
According to Abacus CEO Louise Petschler, the code sets out the rights of members and the responsibilities of their lenders, with credit unions committed to putting their customers first.
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