29 March 2017
Sydney, 29 March 2017: The Australian Bankers’ Association has today reiterated its support for making it easier for customers to cancel credit cards.
A media release issued by Senator Katy Gallagher on 28 March contained misleading comments about the banking industry’s response to recommendations from the independent review of the Code of Banking Practice. It said:
‘Other recommendations of the independent review rejected or not agreed to in full by the ABA includes a clear recommendation to allow simple online cancellation of credit cards and calls to stop unsolicited offers to increase one’s credit card limit.’
ABA Executive Director – Retail Policy Diane Tate said the industry supported, in full, the recommendation1 in question from Mr Phil Khoury’s final report.
“Each bank will look at how they can make it easier for customers to cancel their credit card, whether that’s online or another way that takes less time and effort than the current process,” she said.
“Cancelling a credit card often also involves cancelling recurring payments which are set up through card schemes, so we have to work on marrying up the two processes so that customers aren’t left with debt accruing on a cancelled card.
“In terms of credit limits, the law states that customers have to choose to receive offers to increase their credit limit, therefore banks are not making ‘unsolicited’ offers to increase credit limits,” she said.
ENDS
Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913
1Recommendation 26: The Code should be amended to include a new obligation that wherever there is functionality (electronic or otherwise) for a customer to alter a credit card limit, this must (equally and as prominently) include the ability to reduce the credit limit or to cancel a Code customer’s credit card.
Latest news
We write on behalf of the undersigned Alliance of Industry Associations to raise a growing concern aboutgovernment’s inadequate consultation on recent complex legislative and regulatory reforms. We represent 30groups from across the economy including small, medium and large businesses, farmers, builders, retailers,universities and tax and accounting professionals. Our organisations support genuine and timely consultation as… Read more »
The ABA welcomes the release of the Federal Government’s response to the Parliamentary Joint Committee on Corporations and Financial Services’ inquiry into financial abuse, released today. ABA CEO Simon Birmingham acknowledged the important work of the committee as well as the Government’s response and said banks were committed to protecting customers from the scourge of… Read more »
E&OERadio InterviewInterview ABC Statewide Drive Victoria9 October 2026 Topics: Regional banking Jane Nield: Well, do you still have a bank branch in your local area? If you’re one of the more than 600 regional locations nationwide that have lost a bank in the last few years, did it have a big impact? So often, it… Read more »