One in five credit card holders are struggling to make repayments, while honeymoon rates to lure customers to new cards can create a “debt trap”, the corporate regulator has warned in a broadside that calls on banks to take steps to ensure customers aren’t lumbered with prolonged, high-interest credit card debt.
After the banking royal commission lashed credit card lending at the big banks, the Australian Securities and Investments Commission said in a scathing report on the $45 billion credit card industry that “responsible lending assessments for credit cards can be improved” and many customers have cards that don’t suit their behaviours.
“We are concerned about the amount of problematic debt we found,” ASIC said i…
Read the full article at: https://www.afr.com/business/banking-and-finance/financial-services/asic-warns-banks-on-credit-card-debt-20180703-h126vr
