HomeMedia & ResourcesMedia ReleasesASIC report shows consumers should seek a better credit card deal

ASIC report shows consumers should seek a better credit card deal

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The Customer Owned Banking Association today encouraged consumers to explore better credit card options after an ASIC review into credit cards found that one in six Australians are struggling with credit card debt.

ASIC reviewed 21.4 million credit card accounts over five years and found while credit cards offer flexibility, they can present a ‘debt trap’ for some consumers.

ASIC found that for consumers that were repeatedly charged interest on high-interest rate cards, the amount of interest charged could have been reduced by $620 million in 2016–17 if interest was charged at 13%.

 ASIC’s report highlights:

  • the risk that credit cards can cause financial difficulty for many Australian consumers
  • that consumers are being provided with credit cards that don’t meet their needs (i.e. carrying balances on high interest rate rather than low rate products), and
  • that only a handful of credit providers take proactive steps to address persistent debt, low repayments or poorly suited products.

“It’s concerning that many consumers are getting poor outcomes,” COBA CEO Michael Lawrence said.

“It’s important that Australians with credit cards not only shop around but talk to their provider about how to manage repayments and debt.

“The customer owned model is solely focused on the customer, because 100% of profits are used to benefit customers.

“Importantly, Australia’s mutual banks, credit unions and building societies want to work with their customers to help them manage their financial commitments.

“The Canstar website currently shows 41 credit cards from customer owned banking institutions with a purchase rate of less than 13 per cent.”

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For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication

02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Customer Owned Banking Association is the industry body for mutual banks, credit unions and building societies.  See www.customerownedbanking.asn.au

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Media Contacts

Mick Gibb
Corporate Affairs Manager
P: +61 2 8035 8444
M: +61 423 149 494
Email Mickcontact-arrow

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