Canadians are feeling stressed about debt but don’t trust their lenders to help them deal with it.
Relationships between lenders and borrowers are so bad for 37% of people that they avoid financial services representatives because they feel under pressure to deal with finances in a way they are not happy with.
The findings are part of a survey by DUCA Impact Lab with Angus Reid which included 2,000+ borrowers and 250+ lenders.
"The findings of this study bring to light some important gaps in the current banking system which fail to serve the best interest of the average Canadian," said Doug Conick, President & CEO, DUCA Credit Union and Chair of the DUCA Impact Lab. "Whether it be navigating the best way to manage household debt or raising awareness around financial literacy and the products and services available more broadly, lenders should make it their shared responsibility to better support borrowers."
The study reveals that 42% of Canadian lenders admit that borrowers don't understand the financial products they purchase.
Mortgage borrowers have stronger finances
It also shows that borrowers who have a mortgage are more likely to be wealthy and older, report a good credit score and a better ability to manage their finances.
Among those who do not have a mortgage - a quarter of which are millennials – almost half report poor personal finances compared to 78% of those with a mortgage who report good personal finances.
More than 4 in 10 borrowers said they consider lenders to be sales orientated rather than customer-driven.
"We remain acutely focused on raising awareness of and driving a conversation around the importance of a fair banking system and providing a level playing field for Canadians when it comes to addressing issues surrounding debt and accessing financial services more broadly," added Conick.
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