Tighter credit rules 'are long overdue'

The federal government’s proposal to bring in tighter consumer credit laws is a positive, but long overdue, move, it has been claimed.

Earlier this week, the government issued a Green Paper aimed at reforming the regulation of various financial products including credit cards.

A subsequent editorial by the Geelong Advertiser has noted that the proposals aim to make banks "smarten up" about who they extend credit to, how much credit they extend and what they charge.

It suggested that while such reforms may affect the decision of Aussies looking to compare credit cards and other loan facilities, they may ultimately improve the rights of consumers generally.

"The upshot, of course, is that the cost of credit will rise, and that access to credit will become tougher," said the newspaper. "The former will irritate some but the latter’s not a bad thing – many people who should know better have been preyed upon and, regrettably, they’re not always the only ones to suffer when the debts come rolling in."

Earlier this week, an article on Lifehacker.com argued that Australian travellers and tourists should keep a separate debit or credit card for travel expenses in order to isolate fraudulent activity.

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