Virgin backs Latham bank accountability pledge
(22 June 2004 – Australia) Virgin Money has welcomed Labor Party leader Mark Latham’s proposals to make banking in Australia more accountable, particularly in the credit card industry.
Speaking on Sunday, Latham said he planned to legislate and regulate bank services and that consumers had often been "short changed".
He said that despite racking up record profits, bank fees and charges continued to soar.
Virgin Money managing director Rohan Gamble said the company had been "deeply surprised" by the lack of industry regulation and the ease with which card providers could "trick" people into expensive borrowing.
"We strongly believe that Australia should follow the lead of the US and the UK in forcing card providers to disclose key fees and interest charges up front in Honesty Boxes," he said.
Gamble said Virgin had been calling for industry wide adoption of Honesty Boxes since November 2003, following a survey commissioned by the company which showed consumers wanted greater transparency in credit card marketing.
"It’s great news for consumers that the ALP is now putting credit card marketing practices firmly under the spotlight," he said.
He said that despite racking up record profits, bank fees and charges continued to soar.
Virgin Money managing director Rohan Gamble said the company had been "deeply surprised" by the lack of industry regulation and the ease with which card providers could "trick" people into expensive borrowing.
"We strongly believe that Australia should follow the lead of the US and the UK in forcing card providers to disclose key fees and interest charges up front in Honesty Boxes," he said.
Gamble said Virgin had been calling for industry wide adoption of Honesty Boxes since November 2003, following a survey commissioned by the company which showed consumers wanted greater transparency in credit card marketing.
"It’s great news for consumers that the ALP is now putting credit card marketing practices firmly under the spotlight," he said.
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