Banks 'are still making unsuitable credit card offers'
Australia's banks are continuing to offer vulnerable customers credit card facilities that they cannot afford, it has been claimed.
Christian Oey, chief executive officer of NoBankruptcy.com.au – a company specialising in debt negotiation on behalf of consumers – argued that while "there is no obligation to accept the offer", people in financial stress will certainly entertain additional credit when it is freely offered.
"If the banks legitimately target 'existing customers who demonstrated … a capability to consider a higher credit limit' – then why do so many of our clients, who are all in financial stress, continue to receive these same offers when clearly they have no capability?" he said.
The comments may interest Aussies looking to compare credit cards in search of better options. Mr Oey suggested that additional credit is often "a band aid solution" that leads to crippling debt and even bankruptcy.
He was speaking after an Australia Institute report into how banks promote credit cards last week recommended the outlawing of pre-approved credit card deals.
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