ACCC wants credit card rates cut

The Australian Competition and Consumer Commission wants an inquiry into why major banks are not passing on interest rate cuts to credit card rates.

InfoChoice data shows that despite official interest rates falling 1.75 percentage points this year, the credit card rates of some banks have barely moved.

Sample of rate cuts on popular cards:

ANZ Bank
Qantas Telstra Visa, down 0.25 percentage points to 17.5 per cent

Commonwealth Bank
True Rewards, down 0.75 percentage points to 15.9 per cent

Westpac
55 Days Interest Free Visa, down 0.75 percentage basis points to15.9 per cent

National Australia Bank
44 Days Interest Free Visa, down 1.25 percentage points to 15.5 per cent

Although the interest rate on Westpac's Global Rewards Visa Card recently fell 2 per cent to 14.90 per cent, this was due to the collapse of Ansett and Westpac's affiliate card reward program.

ACCC chairman Alan Fels told the ABC: “We can accept some delay in credit card rates going down after interest rate falls but the lag is now quite a substantial period of time and it's about due to fall.”

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