The Australian government is now keen to reform the credit card industry. The government wants to stop the banks from charging customers “over the limit fees”, which will put an end to a very lucrative income streams for many banks The reforms also call for banks to implement appropriate IT systems so customers will not be allowed to exceed their credit card limits by more than 10 per cent.
The Australian Bankers Association is up in arms with the proposed changes to the credit card rules, however, we welcome the proposed changes. We feel that the banks have an obligation to ensure their consumers do not exceeds their pre-approved credit card limit.
We also support the abolishment of “over the limit fees”.
The banking industry claims the industry lacked the technology to meet the changes by the proposed starting date in the middle of next year.