Australian Politics Forum - A Last Ditched Campaign To Top Up Credit Cards.

imcrookonit

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A Last Ditched Campaign To Top Up Credit Cards.
Feb 26^th, 2012 at 9:07am

Helen Pow
The Sunday Telegraph
February 26, 2012 12:00AM

BANKS have launched a last-ditch campaign, bombarding customers with unsolicited offers to top up their credit card limits before it becomes illegal. Sad

From July 1, banks and credit unions will be banned from sending cardholders offers to raise their credit limit unless they opt-in to receive them.

Australians owe a record $50.3 billion on credit cards, with more than two-thirds of this accruing interest every day, while our collective credit limit has swelled to more than $137 billion. Shocked

Customers from the Commonwealth Bank, Westpac, ANZ, Bankwest and Suncorp have blasted the pre-ban offers on Choice's Facebook page.

"I've received three letters this year from WBC offering me an increase and asking me to sign up to provide permission to receive further offers after 1 July," Westpac customer Emily Best wrote. Sad

"I like this reform. If I want an increase to my credit limit I will ask." Smiley

Bankwest cardholder Isobel Hannan said she'd been offered a top-up through internet banking.

Choice said banks had fired off emails and letters "inviting" customers to take on more debt ahead of the July deadline. Angry

"Not only are the banks being dragged kicking and screaming into the reform process, they are trying to take as much consumer debt with them as possible," Choice banking spokesman Matt Levey said. "The federal government has decided this is a dodgy practice and the banks are rushing to cash in before the deadline. It says a lot about how banks treat their customers." Angry

Nobankruptcy.com.au chief executive Christian Oey said pre-approved limit increases had pushed thousands of families into financial trouble. Sad

"It's really sad when institutions with such massive profits dangle a tantalising carrot in front of a customer who is struggling to put food on the table," he said.

Australian Bankers' Association chief executive Steven Munchenberg said cardholders could refuse the offers and insisted banks were only offering the extra cash to customers who could afford it.

"An offer of a credit card limit increase is just that - it's just an offer," he said. "And customers can choose to accept or decline the offer." Roll Eyes

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imcrookonit Ex Member	Re: A Last Ditched Campaign To Top Up Credit Cards. Reply #1 - Feb 26^th, 2012 at 9:10am Australians owe a record $50.3 billion on credit cards, with more than two-thirds of this accruing interest every day, while our collective credit limit has swelled to more than $137 billion.
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Andrei.Hicks Gold Member Offline Australian Politics Posts: 23818 Carlsbad, CA Gender:	Re: A Last Ditched Campaign To Top Up Credit Cards. Reply #2 - Feb 26^th, 2012 at 9:18am Its their problem Imcrook, if I don't owe anything and you don't. Then its not worth worrying about eh?
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imcrookonit Ex Member	Re: A Last Ditched Campaign To Top Up Credit Cards. Reply #3 - Feb 26^th, 2012 at 9:25am It should be everyone's problem. Responsible borrowing habits from people, is a good thing. Having said that though, responsible lending habits, from the banks and lending institutions, would be a good thing as well.
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Bobby. Gold Member Offline Australian Politics Posts: 111572 Melbourne Gender:	Re: A Last Ditched Campaign To Top Up Credit Cards. Reply #4 - Feb 26^th, 2012 at 10:01am Of course they will try to ramp up credit cards - the interest rate is 20% - the worst deal you can get except for payday loan sharks - or Harvey Norman.
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Sir lastnail

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Re: A Last Ditched Campaign To Top Up Credit Cards.
Reply #5 - Feb 26^th, 2012 at 10:03am

Andrei.Hicks wrote on Feb 26^th, 2012 at 9:18am:

Its their problem Imcrook, if I don't owe anything and you don't.

Then its not worth worrying about eh?

Then why are the banks offering a top-up ??

In case they didn't teach you at school here is how the banking system works and why they need to find suckers to lend money to Wink

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« Last Edit: Feb 26^th, 2012 at 10:16am by Sir lastnail »

"All of the arab states have said we will have peace with Israel when there is a state of Palestine as a UN member state and properly constituted." - Jeffrey Sachs.

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Sir lastnail

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Re: A Last Ditched Campaign To Top Up Credit Cards.
Reply #6 - Feb 26^th, 2012 at 10:09am

Quote:

It should be everyone's problem. Responsible borrowing habits from people, is a good thing. Having said that though, responsible lending habits, from the banks and lending institutions, would be a good thing as well. Wink

In Germany, banks only encourage the use of debit cards. How come the banks can be responsible in Germany ?

Quote:

3. Availability of bank funding:
The stock market and private equity is not as important in Germany as it has been in the US and the UK and a large element of the corporate funding required in Germany is delivered through the banking system. This funding, particularly to the mittelstand, is often provided through the Hausbank system where companies have a long-standing, largely exclusive banking arrangements with one-main bank that is often locally based and understands and supports the local market and economy. The banking system in Germany has been more understanding and supportive of the long term nature of the sector and the requirement for longer term funding. One of the differences in the German economic model seems to be the use of debit cards rather than credit cards which gives a better profile for bank funding and savings – giving the banks the ability to invest. Finally as manufacturing is a much more highly regarded sector in Germany banks (and other funders) have been more inclined to be supportive of what is a key sector in the economy.

http://www.bdo.uk.com/press/talk-shop/vorsprung-durch-manufacturing-what-can-uk-...

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"All of the arab states have said we will have peace with Israel when there is a state of Palestine as a UN member state and properly constituted." - Jeffrey Sachs.

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bobbythefap1 Gold Member Offline Posts: 7026 Listen now to the rain	Re: A Last Ditched Campaign To Top Up Credit Cards. Reply #7 - Feb 26^th, 2012 at 10:10am Andrei.Hicks wrote on Feb 26^th, 2012 at 9:18am: Its their problem Imcrook, if I don't owe anything and you don't. Then its not worth worrying about eh? Two words: Public debt. Something you people in the US should be very worried about also
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Kat

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Re: A Last Ditched Campaign To Top Up Credit Cards.
Reply #8 - Feb 26^th, 2012 at 10:35am

LastNail wrote:- "In Germany, banks only encourage the use of debit cards. How come the banks can be responsible in Germany ?"

No idea, Nail, but a debit-card is all I've ever used.

Suits me fine.

That, combined with internet-banking, is all I need.

I also tend to make far less 'impulse' purchases with a debit-card
than I do with cash, or that my friends do with their credit-cards.

So in a way, it actually SAVES me money.

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« Last Edit: Feb 26^th, 2012 at 10:40am by Kat »

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Sir lastnail

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Re: A Last Ditched Campaign To Top Up Credit Cards.
Reply #9 - Feb 26^th, 2012 at 11:21am

Kat wrote on Feb 26^th, 2012 at 10:35am:

LastNail wrote:- "In Germany, banks only encourage the use of debit cards. How come the banks can be responsible in Germany ?"

No idea, Nail, but a debit-card is all I've ever used.

Suits me fine.

That, combined with internet-banking, is all I need.

I also tend to make far less 'impulse' purchases with a debit-card
than I do with cash, or that my friends do with their credit-cards.

So in a way, it actually SAVES me money.

Well the bank won't like you because they can't rip you off on interest.

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"All of the arab states have said we will have peace with Israel when there is a state of Palestine as a UN member state and properly constituted." - Jeffrey Sachs.

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red baron Gold Member Offline Australian Politics Posts: 10204 Blue Mountains Gender:	Re: A Last Ditched Campaign To Top Up Credit Cards. Reply #10 - Feb 26^th, 2012 at 2:38pm Hasn't this been going on since Shylock bargained for three pounds of Antonio's flesh iin the Merchant of Venice? I don't think anything has changed in the banking system since then.
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Andrei.Hicks

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Re: A Last Ditched Campaign To Top Up Credit Cards.
Reply #11 - Feb 26^th, 2012 at 3:31pm

Sir lastnail wrote on Feb 26^th, 2012 at 10:03am:

Andrei.Hicks wrote on Feb 26^th, 2012 at 9:18am:

Its their problem Imcrook, if I don't owe anything and you don't.

Then its not worth worrying about eh?

Then why are the banks offering a top-up ??

In case they didn't teach you at school here is how the banking system works and why they need to find suckers to lend money to Wink

Again for you mate.
I don't owe anything to the banks.
So.....

If you don't owe anything why care what they do to other people??

I couldn't care less about anyone else.

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Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde

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Sir lastnail

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Re: A Last Ditched Campaign To Top Up Credit Cards.
Reply #12 - Feb 27^th, 2012 at 10:37am

Andrei.Hicks wrote on Feb 26^th, 2012 at 3:31pm:

Sir lastnail wrote on Feb 26^th, 2012 at 10:03am:

Andrei.Hicks wrote on Feb 26^th, 2012 at 9:18am:

Its their problem Imcrook, if I don't owe anything and you don't.

Then its not worth worrying about eh?

Then why are the banks offering a top-up ??

In case they didn't teach you at school here is how the banking system works and why they need to find suckers to lend money to Wink

Again for you mate.
I don't owe anything to the banks.
So.....

If you don't owe anything why care what they do to other people??

I couldn't care less about anyone else.

We know you don't care about anyone else !!

How is that banks are allowed to conjure money out of thin air with NO collateral behind them ??

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"All of the arab states have said we will have peace with Israel when there is a state of Palestine as a UN member state and properly constituted." - Jeffrey Sachs.

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