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NAB rewrites indigenous loan rules
15 Jan 2008
The National Australia Bank has had to change the way it lends to people in remote indigenous communities after the Australian Securities and Investments Commission found that many borrowers did not understand the arrangements and could not repay the loans. ASIC looked at a random selection of 25 loans and found that in many cases the borrower did not know the terms and conditions and were unable to service the debt. ASIC said that the bank would now "tailor its lending practices in recognition of the special needs and circumstances of borrowers in regional and remote indigenous communities". The Commonwealth Bank already revised its lending practices in 20096 after finding that some borrowers were overcommitted as a result of the bank's lending criteria.
Sydney Morning Herald, 15/1/2008
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