Example 2 - Unconscionable Conduct - Coles 'No Annual Fee MasterCard' and Coles 'Rewards MasterCard'
The Writer told Mary that he was perusing the "Contract Documents and Credit Guide" [65 pages] for the two Coles MasterCards (administered by GE Money) which notes at the top of page 3:
We strongly recommend that you read these Conditions of Use and the Coles MasterCard Financial Table
carefully and ensure that any additional cardholder also does so. If you have any questions please contact us.
The Writer defies anybody to read the "Contract Documents and Credit Guide" [65 pages] "...carefully and ensure that any additional cardholder also does so." Requiring each Cardholder to read 65 pages of complex and detailed legal clauses is Unconscionable Conduct when the key information of the real costs and real benefits can be set out in a dozen bullet points on a single page. The bullet points for the above two MasterCard adds do not warn of any negative features that can result in unexpected interest costs.
The Writer asked Mary where he could obtain a copy of the Financial Table referred to in "Contract Documents and Credit Guide" [65 pages] which Coles also strongly recommend that you read. Mary responded that the Financial Table which provides information such as the Card Limit and interest rate/s, fees are provided after the credit card account is opened.
The Writer asked Mary if the Cardholder had paid off say 90% of the Closing Balance by the Due date, would interest @ 17.99% p.a. or 19.99% p.a. be charged on the outstanding shortfall of 10% or on the entire Closing Balance.
Mary said that interest was charged on the entire Closing Balance for the previous month if the Cardholder did not pay the entire Closing Balance by the Due date.
The Writer asked Mary if the Cardholder would then forfeit (for the next two months) their Interest Free Period (not less than 28 days and not greater than 42 days), if the Cardholder failed to repay the entire Closing Balance for the previous month by the Due date. Mary said "Yes". This means that the Cardholder would forfeit their Interest Free Period for the following two months (3 months 'in toto'), whereupon the Cardholder would pay interest @ either 17.99% or 19.99% on all Purchases from the date of each Purchase for the subsequent two months.
Hence, for not paying the entire Closing Balance by the Due date, the Cardholder would pay interest at either 17.99% or 19.99% on all Purchases from the date of each Purchase for three months. The Cardholder would pay Usurious Unsecured Personal Loan Interest Rates on those Purchases.
The above explained interest penalties align with those imposed by St George Bank in Example 1, albeit the interest rate on Purchases on the St. George Visa Card is 20% pa.
Above is a monthly statement from a Coles MasterCard. The summary payment information under "AMOUNTS DUE" in particular Total due: $24.28 is Unconscionable Conduct as it seeks to induce some Financially Uneducated And Vulnerable Australians with only level 1 and level 2 Financial Literacy skills to pay the 'Minimum monthly payment' and not pay the Closing Balance, whereupon the Cardholder will pay interest on Purchases at a Usurious Unsecured Personal Loan Interest Rates Charged On Many Credit Cards of either 17.99% pa or 19.99% pa for a minimum of three months.