What is the Credit Card Key Facts Sheet (KFS)? - St. George Bank

Below is an extract of the St George Bank webpage titled What is the Credit Card Key Facts Sheet (KFS)?

"The Credit Card KFS provides you with a standard layout of important information, like interest rates and annual fees, about consumer credit cards. By comparing the basic facts about different cards you can be better informed when making financial decisions about consumer credit cards.

From 1 July 2012, the Credit Card KFS will be provided to you with paper credit card application forms or when you apply for a credit card via our website or Internet Banking.

There are two types of Credit Card KFS that will be available from 1 July 2012:

A multi-product Credit Card KFS – which is provided to you with consumer credit card application forms (paper or online). This lists important information about all our consumer credit cards.

A single product Credit Card KFS – which will be included in your Credit Card ‘Welcome Pack’. This KFS will be specific to the credit card you have applied for.

NOTE: when you apply for a credit card at a branch or via our call centre, you will not receive a Credit Card KFS; however you will receive one with your welcome pack if your application is successful."

Below is an explanation of associated Regulation 28LFA:

"Regulation 28LFA requires lenders to provide a Key Fact Sheets at the time an application for a credit card is made by a consumer. The Key Fact Sheets must be contained on the application form itself, or given to the consumer on a separate piece of paper with the application and the lender cannot merely refer to a website. Critically, credit card fees, charges and interest rates are unbundled with the specification of a plain language, large font table that separates fees, interest rates, minimum repayments and other charges. This ‘unbundling’ of fees and charges addresses the optimism bias by separating the short term low costs (teaser fees and introductory rates) from longer term interest rates applying to balances. The timing of disclosure occurs before the contract is signed, which may alter behaviour by prompting the consumer to assess realistically their capacity to repay."

By delaying provision of a Key Facts Sheet to a prospective new Credit Cardholder until after the credit card application form has been signed/submitted/accepted, St.George Bank is breaching the National Consumer Credit Protection Amendment (Home Loans and Credit Cards) Act 2011 which obliges each Credit Card Issuer to provide a Key Facts Sheet, in the format prescribed in SCHEDULE 6, (and explained under point '13' in National Consumer Credit Protection Amendment) to each prospective new Credit Cardholder prior to the prospective new Credit Cardholder executing a binding Credit Card contract ("a continuing credit contract under which credit is ordinarily obtained only by the use of a credit card").

SCHEDULE 6 obligates St George Bank to -

(i) inform (under Interest Free Period) how interest on Purchases is calculated, namely that interest is charged @ 20% on the entire month's Purchases if 100% of the Closing Balance is not paid by the Payment Due Date

(ii) alert that if (i) above occurs, then the Interest Free Period is withdrawn for the subsequent two months.

(iii) provide "A full list of current fees applicable to the credit card on the Credit Card Issuer's [ web address for lender's fees page ].