More than 31,000 complaints have been made about credit products since the end of the financial services royal commission hearings, according to a CHOICE analysis.

"The banks promised they'd clean up their act after the shame of the royal commission hearings, but over 31,000 credit complaints show there are still huge problems in the system," says CHOICE CEO Alan Kirkland as crossbench senators in federal parliament decide on a government proposal to roll back consumer protections.

"Repealing safe lending laws is an extraordinary thing to do when many Australians are struggling in the wake of COVID-19. If passed, this will be the biggest handout to the banks we've seen in decades. This is a time for the Senate to do what it was created to do - temper the influence of lobbyists and make sure Australians are put first," says Mr Kirkland.

CHOICE analysed Australian Financial Complaints Authority (AFCA) complaints data across consumer loans, credit cards and housing finance from November 2018 to December 2020. Complaints on credit products can range from irresponsible lending and charging of incorrect fees to poor customer service, fraud and unfair terms and conditions.

It reported that Terrigal and surrounding suburbs on the Central Coast of NSW topped the list with more than 1000 credit product complaints

"Right now, ABS data shows that mortgage lending is at record highs," says Mr Kirkland. "This is fuelling a housing boom that is pushing home ownership out of reach of many more Australians. Scrapping safe lending will land many people with large debts they can't afford and take away their ability to receive justice.

"This contradicts the very first recommendation of the banking royal commission - to leave safe lending laws intact."

A vote on new laws is expected this week.