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New Credit Limits/Laws coming in July. Banks on Edge and Luring Customers to up their Credit Limits While they still can??

nverumind 2012/06/22 00:16:01
RateCity spokesperson Michelle
Hutchison said it is clear that credit card providers were on edge about the
laws.







BANKS
are sending out thousands of messages aimed at luring customers into upping
their credit limits before laws banning the practice come into effect on July 1.


HSBC, BankWest, ANZ and the Commonwealth Bank are among those asking
customers through SMS, internet bank accounts or the post to consent to
receiving invitations to increase their limit next financial year and
beyond.

An ANZ spokesperson said: "We believe that the changes will have
an impact on our business but it’s too early to tell how significant the impact
will be."

The bank has run some marketing campaigns advising customers
of the changes and giving them the opportunity to opt in for future credit limit
increases, the spokesperson said.

A BankWest spokesperson confirmed that
the bank has contacted "a select number of customers who qualify for credit card
limit increases to alert them to the upcoming reforms which may affect their
day-to-day banking".


Under the
Federal Government changes, banks will be banned from sending offers to increase
credit limits unless customers provide consent. Card holders can still apply for
an increase at any time.

Over the limit fees will also be banned under
the reforms, unless new customers specifically agree to
them.

Spokesperson for financial comparison website RateCity Michelle
Hutchison said it is clear that credit card providers were on edge about the
laws.

“The credit reforms could affect their revenue and some card
providers are doing everything they can to protect it,” Ms Hutchison
said.

Banks were making about $1 billion each year in over the limit fees
according to Reserve Bank figures and nine personal credit cards had increased
their annual fees since October 2011, she said.

“We’ve also found over
one third of personal credit cards that offer a balance transfer have reduced
their introductory rates, which could be an attempt to lock in customers before
the changes are in place on July 1,” she said.

Earlier this year the
Australian Securities and Investments Commission found the Commonwealth Bank had
misled customers in December 2011 by suggesting card holders would lose the
chance increase their limit if they did not agree.

A spokesperson for the
Commonwealth Bank said the bank supports the Government’s reforms as they
“ensure financial institutions lend prudently and don’t put customers in a
position where they can’t meet their financial commitments”.

“While
these reforms do not commence until July 1, we take these obligations for
responsible lending and credit provisioning seriously and will comply with these
regulations,” the spokesperson said.

I think its about time that some laws and limits were laid down for the CC companies and Banks!



Read More: http://www.news.com.au/money/banking/credit-card-r...

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  • Chukroast 2012/06/22 01:42:59
    Chukroast
    +1
    I'm unaffected. Don't do credit.
  • nverumind Chukroast 2012/06/22 01:47:14
    nverumind
    Ditto.
  • HarleyCharley 2012/06/22 01:09:49
    HarleyCharley
    +1
    they should be free, with no interest...
  • Jackie ... HarleyC... 2012/06/22 03:17:47
    Jackie G - Poker Playing Patriot
    Oh Harley - you think complete strangers should loan you their money to buy anything you wish and not receive any renumeration for the loan?? Not a good plan for anyone
  • Jackie G - Poker Playing Pa... 2012/06/22 00:30:17
    Jackie G - Poker Playing Patriot
    So you think that the government or you should tell everyone else what they should do with their private finances?? How much they can spend?? How high their limits should be? How about controlling what they buy?? What car they should drive?? What clothes they should wear? And let's don't forget what they eat - we must control that too

    Absurd
  • nverumind Jackie ... 2012/06/22 01:45:22 (edited)
    nverumind
    assumptive as always Jackie.
    Do you think that Banks and Credit Card Companies should be allowed to continue Wreckless Risk taking and Luring consumers (who cant afford CC's-most of the time) into raising their credit limits?
    The thing that concerns me about credit cards and banks loaning credit out, Is that people spend as much money too much money (that isnt theirs) with no intention of ever paying it back (claim bankruptcy- and walk away scott free) and WE pick up the tab.
    They are not telling you What you should "do" with Your Money, credit cards are NOT YOUR money, it is the illusion of money that causes wreckless spending and DEBT, The limits and laws are to “ensure financial institutions lend prudently and don’t put customers in a position where they can’t meet their financial commitments”.
  • Jackie ... nverumind 2012/06/22 03:16:01
    Jackie G - Poker Playing Patriot
    I have little and no sympathy for those who spend money they do not have on things they do not need and then complain about the payments. It is not the business of the government to try to control what people chose to do no matter how damn dumb it is. Customers put themselves in a position where they cannot meet their commitments - no one else is responsible. I realize this is a difficult concept, however, self-responsiblity is the answer - a persons debt is their responsibility, no one made them spend one thin dime - it is time to shout it from the roof tops - the bank did not buy a damn thing on their credit card, no one dragged them into the bank, no one forced them to overextend. No we do not need more laws for these people - no one can protect idiots from being idiots.

    It is the "Scott Free" crowd that gives me real heart burn because that is theft and the people doing it are not victims, they are crooks. However, it is the same with shop lifters in, lets say, Macys - we all pay a more to cover theft of merchandise. It has been part of everything since there have been thieves and products to sell. and I do not think we will ever find the answer to dishonest people. It is something we will al continue to pay for those who cheat and steal.
  • nverumind Jackie ... 2012/06/22 12:40:50
    nverumind
    You are Missing the point, I agree with most of what you are saying.

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