Credit card reforms come into force next week

Banks are sending out thousands of messages aimed at luring customers into upping their credit limits before laws banning the practice come into effect on July 1.

HSBC, Bankwest, ANZ and the Commonwealth Bank are among those asking customers through SMS, internet bank accounts or the post to consent to receiving invitations to increase their limit next financial year and beyond.

Under the Federal Government changes, banks will be banned from sending offers to increase credit limits unless customers provide consent. Card holders can still apply for an increase at any time.

Over the limit fees will also be banned under the reforms, unless new customers specifically agree to them.

Source: Herald Sun