Changes to your Credit Card
Wednesday, 21 November 2018
The Australian Government has passed new legislation which changes the way all banks calculate interest for credit cards with interest free periods and ensures that customers have the right to reduce their credit limit or close their credit card account. These changes apply from 1 January 2019.
What’s changing with interest calculations
Customers who do not pay the full closing balance by the due date on their statement will only be charged interest on their outstanding balance from the day after the due date, rather than the date the purchase was made.
Other transactions which are not eligible for interest free periods, such as cash advances, continue to be charged interest from the date the transaction was made.
The new way of calculating of interest on purchase will affect customers in different ways, depending on whether you’re:
- Currently paying interest;
- Pay your credit card balances in full each month by the due date;
- Sometimes miss your payments
For more information on how this will affect you individually please refer to the letter which you should have received in the mail shortly.
Reducing your limit or closing your account
In addition to the interest calculation changes, the new legislation also requires that all credit card contracts provide customers with a credit limit reduction entitlement as well as a credit card termination requirement. We have updated our credit card contracts to include these entitlements (with effect from 1 January 2019).
Additionally, we will be providing an online means for customers to be able to submit requests to reduce their credit limit as well as to terminate their credit card account. These requests can be made through Online Banking as well as through the Mobile App. You can also submit a request in-person in-branch.