Credit card reforms coming into force next week

27/06/2012

From July 1 consumers will get more information on the costs and benefits of their credit cards.

Unsolicited invitations to increase your limit will be banned from July 1, unless you have said you want to receive them. You'll still be able to apply for an increase any time you want one.

The lender will be required to give you a fact sheet in a standard format about the card's costs and benefits.

Over-limit fees will be banned on new cards unless you have specifically agreed to them, and lenders will be required to notify you when you reach your limit.

Lenders will also be required to direct your payments to the portion of your debt with the highest interest first, ensuring faster repayment of the total.

If you want to benefit from these reforms, you'll have to change to a new card.

Source: Sydney Morning Herald