According to CHOICE CEO Alan Kirkland new analysis has found that “by failing to pass rate cuts on for credit cards, banks have effectively stolen $6.3 billion dollars from the pockets of Australians”.
In statement released on Wednesday, Kirkland said that “while the cash rate has dropped from 4.75% from 0.25% since 2011, credit card rates have remained stubbornly high”.
“Some banks - including ANZ, Bendigo, and St George - have even increased rates on credit cards.
“This is disappointing behaviour from an industry looking to restore trust after the scandals of the Banking Royal Commission,” Kirkland said.
According to Kirkland, “for many people, lower credit costs would have saved them from falling into a debt spiral and facing years of unnecessary hardship”.
“Banks have cut interest rates on mortgages as the cash rate has fallen. There’s no justification for failing to do the same for other credit products, especially now so many Australians have lost their job.”
CHOICE said it is also warning Australians about the banks that have lifted credit card rates up as their costs have gone down.