What the credit card reforms mean for you

28/02/2013

Credit card reforms introduced last year ban over-limit fees and require the card issuer to notify the card holder when the credit limit is exceeded.

Repayments must be directed to the most expensive part of the credit card debt first e.g. cash advance debts. Users must also nominate a credit card limit and financial institutions cannot increase your current limit unless you agree to receive limit increase invitations.

Card issuers must include information about how long it will take to pay off your debt at the minimum monthly repayments in monthly statements and must provide information about how interest free periods work.

Source: Herald Sun