Lawyers and the banking industry are at loggerheads over the way in which they treat borrowers.
In a wide-ranging article, The Times Of India, a national daily newspaper, quotes a lawyer as saying, “I will tell you, the loans are not a loan, they are a loan and they are not for you.”
“They are an opportunity to make money, which the industry does not provide,” the lawyer, who asked not to be named, said.
“It’s not for the borrower.”
A bank lawyer, on the other hand, says, “You will get a loan for nothing.
And it will be your property.”
The debate on the legality of the term loan is part of a larger debate over the future of the industry.
“We are a small, relatively small company and I think the industry has gone into a spiral of greed and self-interest,” said a lawyer in his 50s who is now retiring.
“The industry is a very big business, but now that they are losing out, they want to turn it into a huge, self-interested business.”
A large portion of the money that goes into the industry is derived from people like the lawyer and the banker, who charge the interest and penalties.
In some countries, such as India, where loans are a part of the traditional banking system, people are often forced to pay for the privilege of owning their own property.
In Australia, where the loan industry is largely unregulated, it is common for people to pay more than they are due in the form of a rental or property tax.
The average Australian now owes almost $40,000 a year, according to a report by the Australian Institute of Finance.
“It’s all about the money, and it’s about the way they’re getting it,” said the lawyer.
“They don’t really care about the person who’s actually paying the bill.
It’s about getting it through the banks and the industry.”
Aboriginal groups argue that the term lender is a form of colonialism that has left the Indigenous people of Australia without financial security.
“The loan is a kind of financial injustice that has been perpetrated on us,” said Kym Riddell, a member of the Northern Territory Aboriginal Corporation.
“If the banks would stop taking money from us, then we would get it back, and we would stop suffering,” she said.
Riddell has a loan of $25,000, from the Bank of New South Wales.
The bank is not offering a repayment plan.
Ridership in the industry peaked in the early 1990s, but then began to decline.
According to the Reserve Bank of Australia, the number of loans in the banking system has declined from 2.4 billion in 2006 to 2.2 billion in 2020.
The industry has been growing at a much slower rate than the overall economy, with the number per borrower down to about 6,000 in 2017.
“I would say that it’s an industry that is now about to go under,” said Riddells partner.