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In Australia, our household debt is among the highest globally, with our credit card bills adding up to a hefty $30 billion as a nation. In December, the Australian Bankers Association proposed a change to their code of conduct which they say will lessen the debt of Australians. The proposed changes are primarily focussed on credit cards.
ABA chief executive Anna Bligh says the new code, "will go a long way in addressing the expectations that Australians have of their banks".
The changes include:
Banks are notorious for holding their own interests in higher regard than their customers, so at this stage it is hard to tell what kind of impact these changes will make.
"From the media reports, it looks like there are steps forward, particularly on concerns about the way the banks support those experiencing vulnerability, the provision of things like guarantees and those who are in financial difficulty," CEO of the Consumer Action Law Centre (CALC) Gerard Brody told ABC News.
It is highly likely, however, that the changes will help customers make better informed decisions before signing up for a credit card in the first place. The new code of conduct ensures more transparency and provides more easily accessible information to the consumer.
The changes are yet to be set in stone, as the ABA are likely waiting for the code to be approved by a corporate regulator. Significant changes such as this code can take months or years to become approved.
While credit card debt does account for a significant portion of the nation’s household owings, there are many other aspects to consider. Among these are mortgages, students loans, and personal loans. While the changes made by the ABA could make some difference to the nation’s growing debt problem, there are many other aspects to consider.
If you are struggling with debt, contact one of our professionals today for a free initial consultation.
Beyond Debt is a trading name of DCS Group Aust Pty Ltd. Australian Credit License: 382607. RDAA Number: 1126. PO Box 3074 Newstead, QLD, 4006.
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