Credit card crack down ‘too tough’ - ABA
(27 May 2011 – Australia) Australian Bankers’ Association (ABA) has criticised the federal government’s credit-card crackdown as too tough.
ABA chief executive Steven Munchenberg believes credit-card debt in Australia is not spiralling out of control and the strict new laws could lead to higher consumer charges.
Mr Munchenberg said the average credit-card debt per customer in Australia had grown by A$76 in the past year, which was less than inflation. The number of new cards rose by 2 percent.
'I would suggest that despite the government's concerns, we are not seeing an outbreak in credit cards or credit-card debt,' Mr Munchenberg said.
Mr Munchenberg said the banks would also campaign against the government's plan for credit cards to come with a 'buffer', in which customers could choose an extra amount of debt their accounts could take on.
The government plans to scrap credit card over-the-limit fees and ban credit limit upgrades as it intensifies its regulatory oversight of the banking sector.
The proposals, which will cost the industry millions of dollars in fee income each year, will also force banks to allocate card repayments to high-interest debts first and make it mandatory for credit-card application documents to outline a summary of account features.
The banks will also have to provide mortgage customers with a key fact sheet that can be used to compare home loans with products from rival banks.
Mr Munchenberg said the average credit-card debt per customer in Australia had grown by A$76 in the past year, which was less than inflation. The number of new cards rose by 2 percent.
'I would suggest that despite the government's concerns, we are not seeing an outbreak in credit cards or credit-card debt,' Mr Munchenberg said.
Mr Munchenberg said the banks would also campaign against the government's plan for credit cards to come with a 'buffer', in which customers could choose an extra amount of debt their accounts could take on.
The government plans to scrap credit card over-the-limit fees and ban credit limit upgrades as it intensifies its regulatory oversight of the banking sector.
The proposals, which will cost the industry millions of dollars in fee income each year, will also force banks to allocate card repayments to high-interest debts first and make it mandatory for credit-card application documents to outline a summary of account features.
The banks will also have to provide mortgage customers with a key fact sheet that can be used to compare home loans with products from rival banks.
Subscribe