Better education needed on credit cards

19 August 2015

In their submission to the Senate Economics Committee Inquiry into Credit Card Interest Rates, the Customer Owned Banking Association (COBA) has called for measures to empower consumers and promote competition in the credit card market.

“Independent consumer polling commissioned by COBA shows low awareness by consumers about their credit card interest rate and who offers the lowest rate cards,” COBA CEO Mark Degotardi said.

According to Canstar’s online database, interest rates on standard credit cards offered by customer owned banking institutions are on average almost one-third lower than the major banks, with more free days and lower annual fees.

Source: Canstar database, 22 June 2015

“The credit card market is delivering competitive products and choice to consumers but the challenge is ensuring that consumers are informed and empowered to act in their own interests,” concluded Mr Degotardi.