Financial Rights Submission on Matters relating to credit card interest rates

The Consumer Action Law Centre (Consumer Action) and the Financial Rights Legal Centre (Financial Rights) welcome the opportunity to provide a submission to the inquiry into credit card interest rates.

Overall, we are concerned by the increasing levels of credit card debt in Australia, and the impact this indebtedness is having on consumers. Briefly, our submission address the following:

• levels of credit card debt;
• the impact of credit card indebtedness;
• the impact of previous credit card reform;
• barriers to switching credit cards;
• credit card marketing;
• credit card disclosure;
• responsible lending;
• minimum monthly repayments;
• value of loyalty programs; and
• credit card transaction costs.