New credit card reforms come into force

From 1 July 2012 changes to NEW credit card contracts mean:

Credit card key fact sheets will provide a standardised layout of key information.

You will have more control over the amount of credit you receive. When you apply for a credit card you will be asked to nominate a credit limit.

Over-limit fees will be banned unless you specifically agree that your lender can charge you a fee for the service.

You will be notified when you have exceeded your credit limit so you can decide whether to keep using your card or whether to make a payment to reduce your balance.

Credit card providers will be required to direct repayments to the most expensive part of your credit card debt first – making it easier to reduce your debt faster.

Source: AustralianBankingReforms.gov.au

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