Consumers will win from credit card reforms

Treasurer Scott Morrison has produced a consultation paper on credit card market reforms. Among other measures, credit card issuers will be prohibited from backdating interest charges and charging interest on the portion of the balance that has been paid off.

Currently, if the interest-free period is forfeited by the customer making a late payment, interest will be charged from the date of the purchases on the full purchase cost, even though there was a partial payment by the end of the statement period.

Source: Banking Day