Card offers should be banned

Unsolicited, pre-approved credit card limit increase offers from banks and other card issuers should be prohibited say consumer groups. Banks are only required to disclose minimum monthly repayments in their letters offering higher credit limits to existing customers, not to new customers. An expert in human behaviour said the letters from banks offering increased card limits exploited human instincts to trust experts and encouraged consumers to accept a higher credit card limit without considering the burden of the additional debt they were taking on.

Source: Sydney Morning Herald

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