Westpac criticises credit card reforms

Government plans to get rid of over-the-limit fees on all credit cards have been slammed by Westpac.

The second largest bank in the country lodged a submission to the Treasury to record its "serious concern" with the draft bill, reports the Australian Online.

Under the terms of the new proposals, banks will no longer be permitted to charge those with credit cards who go over their limit.

Brett Gale, head of government affairs at Westpac, commented: "We were surprised and deeply disappointed when we received the draft bill … to discover that key aspects of the government's policy had changed on the eve of [the] release."

He added that the inclusion of a ten per cent buffer could give consumers the illusion that they can exceed their credit limit.

According to the Australian Financial Review, those who own plastic are set to save millions of dollars each year as a result of the changes to the legislation, news which might prompt Aussies to compare credit cards.

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