Australia in credit card probe
22 June 2015 by News Desk
Members of Australia’s parliament are calling for an inquiry into high interest rates charged by credit card companies in Australia.
Labor and cross bench senators have called for the Abbott government to investigate the disparity between the higher interest rates charged by credit card companies and the country’s record low cash rate. The Reserve Bank of Australia has cut its cash rate by 275 points since 2011 to a record low of 2%, but the average standard credit card rate is 19.75%.
Opposition leader Bill Shorten and Labor senator Sam Dastyari have written to Prime Minister Tony Abbott seeking his support for a Senate inquiry.
A spokesperson for treasurer Joe Hockey said the government will consider Shorten’s proposal. The government is currently awaiting the results of its previously-announced financial system inquiry, which includes issues related to credit card.
Independent senator Nick Xenophon said that credit cards have been a lazy way for banks to bolster their profits. “Millions of Australians are paying billions of dollars needlessly with their cards,” he said.
