Written Questions (re Credit Cards)

Snapshot of Question 6:

Does the recommendation by St George Bank that you should "read this booklet carefully", the direction by ANZ to read its booklet in its entirety and the instruction by Westpac to READ YOUR CONTRACT constitute Unconscionable Conduct as the terms and conditions documents/booklets are 62 pages, 97 pages and 43 pages respectively in small font?

Question 6

Will the Federal Treasurer request the relevant Regulator if the immediately below recommendation by St George Bank and the further below instructions from ANZ and Westpac constitute Unconscionable Conduct as defined by the ACCC (refer Chapter 1) having regard to separate reports by the Productivity Commission (Staff Working Paper "Links Between Literacy and Numeracy Skills and Labour Market Outcomes" dated Aug 2010) and the ABS (4228.0 - Adult Literacy and Life Skills Survey, Summary Results, Australia, 2006 (Reissue) that indicate that up to 50% of Australians do not possess the Financial Literacy skills beyond Level 2.  Yet level 3 is regarded by the survey developers as the ‘minimum required for individuals to meet the complex demands of everyday life and work in the emerging knowledge-based economy’:

*            St George Bank "We strongly recommend that you read this booklet carefully and retain it for your future reference" a 62 pages Conditions of Use - Credit Guide document of Conditions where 60 pages are written in tiny 8.5 Helvetica font.  The word 'interest' appears in the 'Contents' twice and 77 more times throughout the 62 pages.  The word 'fee' or 'fees' appears 53 times.

*           ANZ's 'CONDITIONS OF USE 20.06.2016 CONSUMER CREDIT CARDS'  - 97 page booklet printed in Arial 9 font.  The word "interest' appears 216 times in the booklet.  The word 'fee' or 'fees' appears 104 times.  "The following summary is designed to highlight some of the important information about your credit card account and to help you identify where to find further details within this booklet. The summary is not a substitute for the terms of Parts A and B of this booklet, which you should still read and understand."

*          "Ignite by Westpac - Consumer Credit Card Conditions of Use".  The word 'interest' appears in the 'Contents' once and 92 more times throughout the 43 pages.  The word 'fee' or 'fees' appears in the 'Contents' once and 74 more times throughout the 43 pages.  "This User Guide forms part of your Credit Card Contract, along with the information set out on the reverse of your welcome letter which advises you of your credit limit and other prescribed information we are required to give you by law."  Clause 17 is "Do I have any other rights and obligations?"  "Yes. The law will give you other rights and obligations. You should also READ YOUR CONTRACT carefully." 

 

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