Consumers 'may find ways round credit card reforms'

By Mozo ·

The introduction of credit card reforms by the government could see wily consumers finding alternative ways to get a large amount of credit.

Peter Arnold, financial analyst at Canstar Cannex, told the Australian Associated Press that the measures preventing financial institutions sending unsolicited offerings of higher credit levels could lead the firms to offer higher limits from the outset.

Conversely, consumers that believe they may find it harder to get an increase in the future may compare credit cards online and apply for lots of them.

Mr Arnold added that there are a number of consumers that are unaware of the way their credit cards operate.

Despite highlighting the potential problems with the reforms, he suggested the moves were a step in the right direction as "any effort to minimise debt risk should always be applauded".

Earlier this month, spokesperson for Veda Advantage Chris Gration said many 18 and 19-year-olds are unaware of the consequences of not paying their credit card bills, News Limited reported.

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