Credit Cards Interest Rates Should be Reduced – Demands FBAA
RBA has left the interest rates on 2% for the third consecutive month. So in this historically low interest rates environment, FBAA urges the Australian banks to lower interest rates for credit cards too.
FBAA chief executive, Peter White has applauded the Reserve Bank of Australia (RBA) for challenging the banks as to why customers have to accept these “sticky” rates on credit cards, which average around 19%.
He said, “We know that card rates have to be higher than regular rates because it’s an unsecured line of credit but it is time customers felt some relief with a reduction in their interest repayments”.
According to him, the credit card holders are charged for banking services such as dwindling ATM transactions due to which they become innocent victims of big banks. He noted that, as the customers are making more and more use of digital platforms to make payments, the banks are therefore lowering the ATM fees. He hopes that this is not the reason why banks refuse to drop interest rates and charges on credit cards. The credit card interest rates are kept unchanged for last 4 years while the official cash rate has fallen to historic lows within the same time.
According to the FBAA, Australians currently hold 16 million credit cards, which bring in around nine billion dollars in interest charges and fees to banks.
News Source: http://www.brokernews.com.au/news/breaking-news/credit-card-holders-need-relief-demands-fbaa-204693.aspx