Call for End to Risky Sale Incentives, Greater Employee Protections, and Fundamental Reform of Banks' Sales and Fees

Washington, DC--Today, as President Obama detailed new consumer protection legislation, Rep. Keith Ellison (D-MN), SEIU, the National Association of Consumer Advocates (NACA) and the U.S. Public Interest Research Group (U.S. PIRG) joined current and former Bank of America workers speaking out against anti-consumer sales practices and a failed banking model and calling for needed reforms to protect front-line bank workers and consumers.

From sun up until sun down, six days a week, I was under constant pressure to push products that were usually bad for consumers and were--in my opinion--unethical," said Gabby Ornelas, a former Bank of America Personal Banker from the Washington area. "It's my hope that if more people learn about the bank's harmful sales practices, we will be able to put an end to it."

Former bank workers say they've had enough with the unrealistic sales decisions made at the top that hurt customers. They say the banks incentivize risk and debt--including pushing products consumers to maximize fees; targeting students, the elderly, and non-English speakers; encouraging overdrafts; raising interest rates; routinely violating the Fair Debt Collection Practices Act; and maxing out consumer credit. These practices were outlined in the Los Angeles Times and Associated Press today.

"Hearing from workers today makes it clear that without whistleblower protection we are not doing what we need to do to manage risk effectively," said Rep. Keith Ellison, (D-MN). "If we don't know what is happening at the branch level we are missing a big part of reform."

Without a voice on the job and strong whistleblower protections, bank workers are unable to speak out publicly about being forced to push harmful products that lead to increased fees and financial traps for customers.

"We believe we must complement regulation from above with regulation from below," said Stephen Lerner, Director of SEIU's Banking and Private Equity Campaign. "If mortgage brokers, loan officers, personal bankers, credit-card associates and other bank workers had protections and incentives to stand up and sound the alarm on dangerous practices, we would not be in the same financial mess we are today."

Rep. Ellison, SEIU, NACA, and U.S. PIRG outlined new protections for front-line bank workers to create a financial industry that puts consumers and the health of our overall economy ahead of quick profits for bank executives. These reforms include:

• Restructuring pay and incentives for front-line finance sector employees away from the current 'sell anything' culture. Employees need the ability to negotiate incentives.
• Creating meaningful ways for employees to speak out to employers and regulators when incentive structures and banking products create problems for consumers.
• Reining in abusive, under-regulated lending practices such as overdraft policies and payday lending.
• Supporting and protecting finance sector employees' freedom to form unions.

"Front-line bank workers continue to bear the brunt of an industry that continues to maximize fees and push customers into more and more debt," said Ed Mierzwinski, Senior Fellow at the U.S. Public Interest Research Group. "We must ensure any financial reform we pass at the federal level restructures an incentive system that promotes risk as well as regulating predatory practices that have flown under the government's radar."

By passing the Employee Free Choice Act, Congress can take an important step towards ensuring front-line bank workers have a voice in financial reform and are able to speak out for consumers. By forming a union, workers can negotiate incentive structures that promote sound financial advice and speak out against products that hurt consumers without fear of retribution.

"Banks are no longer encouraging saving and financial soundness--they've forgotten their core mission," said Ira Rheingold, Executive Director of the National Association of Consumer Advocates. "We need to build protections for bank workers to speak out and get the banks back on track and that means ensuring bank workers are free to form unions and win the whistleblower protection they need."

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