REFORMS: Measures will scrap unfair and predatory credit card practices.
CREDIT card providers will be forced to scrap unfair and predatory practices under reforms to be introduced by the federal government this year.
The measures, which form the first phase of reforms outlined in the the government's response to the Senate inquiry into the credit card market, will:
- require that affordability assessments be based on a consumer's ability to repay the credit limit within a reasonable period
- ban unsolicited offers of credit limit increases
- simplify how interest is calculated
- require online options to cancel cards or to reduce credit limits
Currently Australians owe around $52 billion in debt on 16.7 million credit cards with the average balance sitting at $4730.
