CONFLICT OF INTEREST

A new report from the Australian Securities and Investments Commission has found that Australians owe $45 billion in credit card debt and more than one in six are struggling with repayments.

According to the ABC, the corporate regulator has found that while 18.5% of consumers are overwhelmed by debt, banks and credit card companies are having a fab time, with interest being reaped on $31.7 billion of the total $45 billion debt. ASIC has warned against lax credit limits and “debt traps”, specifically credit card offers that allow balance transfers from one card to another.

Deputy chairman Peter Kell has also said that, despite proactive rules introduced in 2012, lenders such as Citi, Latitude, American Express and Macquarie had failed to adopt proactive measures and 525,000 customers are paying more interest than they need to.