Managing credit card accounts and limits is about to get easier. We're pleased to announce we are adopting the new Australian Government changes to credit cards, called credit card reform, which are designed to further protect customers who hold credit cards. The changes will come into effect from 1 January 2019 and will make it easier for cardholders to cancel their cards and change their credit limit, as well as better understanding interest charges.
Reform 1: Tighten responsible lending obligations for credit card contracts
Under these new guidelines, if you request a credit limit increase or new credit card, banks and financial institutions will need to assess your ability to repay the credit limit in full within a particular timeframe (set by ASIC).
Reform 2: Prohibit unsolicited credit limit offers in relation to credit card contracts
This reform won't apply to P&N, as we have never promoted credit limit increase offers. However, for many banks and financial institutions, this now means they won't be able to contact customers (by phone, email, in-branch or by any other method) to offer credit limit increases, even if they have previously provided consent to receive these offers. This change came into effect on 1 July 2018.
Reform 3: Simplify the calculation of interest charges under credit card contracts
This will make it easier for members to understand how and when you're being charged interest, particularly when the balance is only partly paid off in a statement period.
Reform 4: Reducing credit limits and terminating credit card contracts, including by online means
Credit card providers must give members the option to request to reduce their credit limit or terminate their credit card contract online. This will make it easier for people to decrease the limit on their card, or cancel their credit card. We'll be making changes to our website soon to allow you to make the request online.
If you have any questions on the new credit card reforms, please contact us on 13 25 77.
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