Thirty Two Questions and Supporting Evidence    Submission Letter to Royal Commission April-2018   Defined Terms & Documents  

30th Question

Will the Royal Commission recommend that the Reserve Bank set a new Standard, pursuant to Division 4, Section 18, that requires all Credit Card Issuers to issue a 'Provisional' Charge Card to any applicant under the age of 21 that has not previously held a Credit Card?  Any such applicant, predominantly school leavers, would need to repay the entire Closing Balance by the Payment Due Date for a minimum of three months, prior to being issued with a Credit Card?

=================================================

Supporting Documented Evidence re 30th Question

1.      Below is an extract from 12 consumer protections in the U.S. Credit CARD Act 2009: 

        "4.  Limited credit to young adults

Credit card issuers are banned from issuing credit cards to anyone under 21, unless they have adult co-signers on the accounts or can show proof they have enough income to repay the card debt. Credit card companies must stay at least 1,000 feet from college campuses if they are offering free pizza or other gifts to entice students to apply for credit cards."

2.        Below is an extract from Section 8 B) of the Writer's letter to the Reserve Bank (on CD) dated 8 Dec 2011 (Reference B listed at top of this page):

          "(b)     learning from point 1. of CBA's research in Section 4, set an 'Access Regime' that each credit card issued in Australia to a person who has not previously owned a credit card be a Provisional Charge Card, hereinafter PCC, with a conservative credit limit where the owner of the PCC is required for the initial 12 months to repay the Outstanding Monthly Indebtedness on the PCC in full by the due date (9 days from the Issue Date and 7 days from the normal receipt date for postal delivery) or be subject to severe late fees and restrictions on future PCC use, with deferment of receiving a traditional credit card until the PCC owner complies with the PCC repayment obligations for 12 months without breach."