fbpx
Skip to main content
Financial Assistance Hub

ABA clarifies credit card Code changes

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

@austbankers

bankers.asn.au

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

1 / 3
Media Releases
Banks offer support to customers impacted by flooding in western Queensland and parts of NSW
2 April 2025

Banks stand ready to support customers in western Queensland and parts of New South Wales affected by heavy rainfall and flooding. ABA CEO Anna Bligh said customers don’t have to tough it out on their own and banks have a range of practical measures to assist those facing financial stress. “This is a challenging time… Read more »

Read more
Media Releases
Banks welcome Budget that maintains confidence in our financial system
25 March 2025

The Australian Banking Association (ABA) welcomes the release of the 2025-26 Federal Budget that maintains confidence in our financial system. The ABA welcomes initiatives to: “This Budget provides extra support to Australians in the short-term whilst at the same time helping to address some of our longer-term challenges,” Ms Bligh said. “There are modest measures… Read more »

Read more
Media Releases
Banks welcome more progress in scams war as losses fall
11 March 2025

Banks are continuing to play their part in the fight against scammers, as the ABA welcomes a new report showing scam losses fell by almost 26 per cent last year.   The ABA acknowledges the release of the 2024 Targeting Scams Report by the National Anti-Scam Centre showing combined reported scam losses fell by $700 million… Read more »

Read more