By Third Party, 29 September 2010
Page last updated at 2:16 PM 29-09-2010
Australia’s largest lenders have begun their discussion with the Federal Government on the proposed crackdown on credit card fees which became an election issue.
According to The Australian, senior executives from CBA held meetings with government officials soon after the new government was sworn in over two weeks ago. The newspaper said the discussion was wide ranging covering credit cards to the broader financial system.
Executives from NAB reportedly held discussions with the Treasurer’s office last week, and The Australian is reporting that ANZ is due to begin its discussion with the government this week.
Lenders are preparing themselves for a far stricter credit card regime, after the governing Labor party proposed tough new regulations during the general election campaign.
Labor had made a campaign pledge that lenders would not be allowed a credit card accounts would not be allowed to go overdrawn without the implicit consent of the borrower. Unsolicited credit limit extensions would also become prohibited.
On Monday NAB was the first lender to enact changes ahead of any new regulations as it cut a range of fees on its credit cards. NAB’s move was part of efforts to bridge the widening gap in the credit market between it and its major competitors.
ANZ says it wants guidance from the government on credit card regulation before it enacts any unilateral changes of it s own.
“This is government policy that may become legislation and we are meeting with government this week to discuss the potential changes,” an ANZ spokesperson said.
The other major lenders have yet to comment on what their strategy will entail.
Sourced from Money-AU
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