Petition on Change

Defined Terms and Documents

Launch a Petition on Change.org (or ipetitions) seeking the Commonwealth Govt to review RBA's regulatory performance of Credit Cards since the 1990s

Question 1:

Do you believe that exorbitant Credit Card interest rates (charged after the Interest Free Period expires) that have festered since the 1990s -

(a) is illustrative of a marked shift away from Australia’s inherent Egalitarian traditions of a 'fair go for all', and

(b) has contributed to the widening in the Income Gap? "The gap between rich and poor in Australia continues to widen, with the top 20 per cent of households receiving half the total of household income, while the bottom 20 per cent gets just four per cent of household income."

Financially savvy Australians (referred to by the RBA as Transactors - 67% circa of Credit Cardholders) "...normally pay an annual fee, pay no transactions fees, enjoy the benefit of an interest-free period and in many cases earn loyalty points for each transaction" and benefit from a Line/s of Credit as the cost of Purchases are not paid for up to 45 days after receipt of goods and services.

Australians with low Financial Literacy skills frequently through no fault of their own (referred to by the RBA as Revolvers - 33% circa of Credit Cardholders) have paid Usurious Interest Rates relative to the RBA Cash Rate and endured a spider web of Penalty Fees invariably causing Extreme Financial And Emotional Distress.

Answer 1:
YES / NO

Question 2:

Should the User Pays Principle apply to the Annual Credit Cardholder Fee, Interest Rates and Penalty Fees charged for all Credit Cardholders as Credit Cardholders enjoy the benefits of a Line/s of Credit in particular Tap-and-Go where the cost of Purchases are not paid for up to 45 days after receipt of goods and services? Should there be a 40 cents User Pays Transaction Fee (per Purchase) that would reduce the Merchant Service Fee imposed by the Credit Card Issuer upon the Merchant because the Credit Cardholder does not refund the Credit Card Issuer for the Purchase/s for up to 45 days after the Purchase/s?

Answer 2:
YES / NO

Question 3:

In order to negate Predatory Marketing of Credit Card Products often charged at Usurious Interest Rates, should Australia's Principal Regulator of the Payments System recommend to the Federal Treasurer (catered for in clause Section 11(1) of the Reserve Bank Act 1959) that a maximum interest rate on Purchases and a maximum interest rate on Cash Advances (that had applied until April 1985) be re-imposed for all Credit Card Products issued after 31 December 2022? Should the maximum interest rate on Purchases be 850 basis points circa (above the Cash Rate) and the maximum interest rate on Cash Advances be 950 basis points circa (above the Cash Rate) for Credit Cards contracts executed after 31 December 2022? (It may not be legally possible to reduce the interest rates on existing Credit Cards because a contract may be binding, as it would not be possible to increase the interest rate for the same contractual reason).

Answer 3:
YES / NO

Question 4:

In order to reduce Extreme Financial And Emotional Distress upon Credit Cardholders with low Financial Literacy should Australia's Principal Regulator of the Payments System recommend to the Federal Treasurer (catered for in clause Section 11(1) of the Reserve Bank Act 1959) that the limit for Cash Advances be restricted to 50% of the total Credit Card Limit after 31 December 2022?

Answer 4:
YES / NO

Question 5:

Has the Principal Regulator of the Payments System, namely the Reserve Bank of Australia, since the 1990s adopted the below obligations with regard to Credit Card Products?

"....to ensure that the monetary and banking policy of the Bank .... is directed to the greatest advantage of the people of Australia and that the powers of the Bank ... are exercised in such a manner as, in the opinion of the Reserve Bank Board, will best contribute to ...... the economic prosperity and welfare of the people of Australia.'’

"promoting competition in the market for payment services."

Answer 5:
YES / NO

Question 6:

Should the Federal Government's current review of the Reserve Bank include its performance since the 1990s as Principal Regulator of the Payments System in protecting Credit Cardholders with low Financial Literacy against Predatory Marketing and Numeracy And Literacy Targeting of Credit Card Products?

Answer 6:
YES / NO

Question 7:

Dept of Families and Social Services reported in March 2019 informs that an agg. of $64.1 million (annually) was expended over the previous financial year on Financial Counselling across Federal, six States and the ACT government. Would you like at least a quarter of that burden on the Public Purse redirected to other social needs within five years by adoption of the User Pays Principle, forbidding Predatory Marketing of Credit Card Products and the elimination of Usurious Interest Rates relative to the RBA Cash Rate?

Answer 7:
YES / NO