Banks still have 'a long way to go' on credit card reform

Wednesday 06 October 2010

Article by Mozo

Australia's major banks still have "a long way to go" when it comes to making credit card policies fairer, one commentator has said.

Lesley Parker of the Sydney Morning Herald argued that while reforms announced last week by National Australia Bank (NAB) were welcome, they also highlighted the need for consumers to compare credit cards in order to avoid being deceived by headline interest rates.

NAB announced that from January 14th it will apply customers' repayments first to the debt attracting the highest interest rate, thereby reducing the overall cost of repayment.

The Sydney Morning Herald noted that various consumer groups such as Choice are now keen for other major banks to follow NAB's lead.

"There are plenty of other reforms around cards – such as the many and difficult-to-compare ways that are used to calculate interest – which other banks may care to get involved in," commented Choice spokesman Christopher Zinn.

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