Information and education on credit cards is key for consumers

03 September 2015

In our submission to the Senate Economics References Committee inquiry into matters relating to credit card interest rates, the BCCM highlighted the importance of the customer and member-owned banking model that promotes a responsible approach to banking and customer choice.

Referencing submissions made by our members, COBA and Bank Australia, the BCCM pointed out that customer and member-owned banks have a record of offering competitive low interest rate credit cards relative to the market and a history of responsible banking practices. However, while there may be sufficient choice in the market, there is a considerable amount of insufficient consumer awareness of credit card offerings.

In order for consumers to be able to make an informed and balanced decision, the BCCM made two recommendations to the committee:

1. Promotion of the alternative offering of values based banks via financial literacy programmes;
2. The development of a comparison tool incorporating real costs of credit card to the consumer.

Education and information is a powerful tool to empower consumers to act in their own interests and the BCCM along with our members believe this is an essential element required when it comes to all matters relating to financial products including credit cards.